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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Economic Dynamics in Discrete Time
TL;DR: The focus is on introducing recursive methods -- an important part of every economist's set of tools -- and readers will learn to apply recursive methods to a variety of dynamic economic problems.
Journal ArticleDOI
Trend Inflation, Taylor Principle, and Indeterminacy
Guido Ascari,Tiziano Ropele +1 more
TL;DR: The authors showed that positive trend inflation shrinks the determinacy region of a basic New Keynesian dynamic stochastic general equilibrium model when monetary policy is conducted by a contemporaneous interest rate rule.
Journal ArticleDOI
Inferring Policy Objectives from Economic Outcomes
TL;DR: This paper proposed a system-based estimation approach that uses the solution to the policymaker's optimization problem to infer the underlying policy regime from the economy's evolution over time, showing that the implicit inflation target and the relative weight placed on interest rate smoothing both declined with Volcker's appointment to Federal Reserve chairman.
Journal ArticleDOI
Inflation Dynamics: A Cross-Country Investigation
Pengfei Wang,Yi Wen,Yi Wen +2 more
TL;DR: In this paper, the authors investigate whether standard monetary models driven by monetary shocks are consistent with the empirical facts and find that neither the new Keynesian sticky-price model nor the sticky-information model can fully explain the data.
Journal ArticleDOI
The Young, the Old, and the Government: Demographics and Fiscal Multipliers
Henrique S. Basso,Omar Rachedi +1 more
TL;DR: In this article, the authors used a parsimonious life-cycle open-economy New Keynesian model with credit market imperfections to study the relationship between local fiscal multipliers and demographics.
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.