Journal ArticleDOI
Staggered prices in a utility-maximizing framework
TLDR
In this article, the authors developed a model of staggered prices along the lines of Phelps (1978) and Taylor (1979, 1980), but utilizing an analytically more tractable price-setting technology.About:
This article is published in Journal of Monetary Economics.The article was published on 1983-09-01. It has received 8580 citations till now. The article focuses on the topics: Nominal rigidity & Taylor rule.read more
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Imperfect credibility and the zero lower bound
TL;DR: In this paper, the authors characterize the optimal monetary policy at the zero lower bound for the nominal interest rate if credibility is imperfect and show that the credibility of the U.S. Federal Reserve and the Swedish Riksbank is low in the aftermath of the 2008 economic crisis.
Journal ArticleDOI
Oil Price Shocks and the U.S. Stagflation of the 1970s: Some Insights from GEM
TL;DR: Using a variant of the IMF's Global Economy Model (GEM), featuring energy as both an intermediate input into production and a final consumption good, the authors examines the macroeconomic implications of large increases in the price of energy.
Journal ArticleDOI
How Important Is Precommitment for Monetary Policy
Richard Dennis,Ulf Söderström +1 more
TL;DR: In this paper, the authors quantify the welfare differential between precommitment and discretionary monetary policy in three estimated models of the U.S. economy by calculating the permanent deviation of inflation from target that in welfare terms is equivalent to moving from discretion to pre-commitment.
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The New Keynesian Phillips Curve in Europe: does it fit or does it fail?
TL;DR: In this paper, the authors exploit projections of future real marginal costs generated by VAR models to assess the model's ability to match the behavior of actual inflation in the Euro area.
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Bank capital channels in the monetary transmission mechanism
Bojan Markovic,Bojan Markovic +1 more
TL;DR: In this paper, the authors build a dynamic general equilibrium model to analyse the macroeconomic consequences of changes in the cost of bank capital, and thus the costs of bank credit, and find that the impulse responses are likely to be magnified due to the interaction between the supply and the demand side of the credit market.
References
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The Theory of Matrices
TL;DR: In this article, the Routh-Hurwitz problem of singular pencils of matrices has been studied in the context of systems of linear differential equations with variable coefficients, and its applications to the analysis of complex matrices have been discussed.
Journal ArticleDOI
Aggregate Dynamics and Staggered Contracts
TL;DR: In this article, the authors show that staggered wage contracts as short as 1 year are capable of generating the type of unemployment persistence which has been observed during postwar business cycles in the United States.
Journal ArticleDOI
"Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule
Thomas J. Sargent,Neil Wallace +1 more
TL;DR: In this paper, alternative monetary policies are analyzed in an ad hoc macroeconomic model in which the public's expectations about prices are rational, and it turns out that the probility distribution of output is independent of the particular deterministic money supply rule in effect.
Book
Public Investment, the Rate of Return, and Optimal Fiscal Policy
Kenneth J. Arrow,Mordecai Kurz +1 more
TL;DR: In this paper, a theory of "controllability" is developed and injected into public economics and growth models to analyze optimal public expenditures in the context of modern growth theory, and a model of optimal growth with public capital is proposed.