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
Citations
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Journal ArticleDOI
Menu costs and the long-run output–inflation trade-off
Michael B. Devereux,James Yetman +1 more
TL;DR: In standard, New Keynesian models, there exists an unlimited long-run trade-off between output and inflation as discussed by the authors. But when we allow for an endogenous frequency of price adjustment, this is replaced by an inverted U-shaped relationship.
Journal ArticleDOI
Monetary policy, asset prices and consumption in China*
TL;DR: In this article, a structural vector autoregression method was used to explore the existence of the wealth channel in emerging economies, and the authors found that a loosening of China's monetary policy does indeed lead to higher asset prices and that a positive shock to residential prices increases household consumption.
ReportDOI
Optimal Monetary Policy in Closed versus Open Economies: An Integrated Approach
TL;DR: In this article, the authors developed a new open economy macro model of optimal monetary for a small open economy and showed that the optimal policy problem for the small open market is isomorphic to the closed economy case studied in Clarida, Gali, Gertler (1999) and Günther (2002).
Posted Content
Inflation Forecast-Based-Rules and Indeterminacy: A Puzzle and a Resolution
TL;DR: In this paper, the authors examine an interesting puzzle in monetary economics between what monetary authorities claim (namely to be forward-looking and pre-emptive) and the poor stabilization properties routinely reported for forecast-based rules.
Journal ArticleDOI
Nominal rigidity, desired markup variations, and real exchange rate persistence
TL;DR: This paper developed and estimated a dynamic general-equilibrium sticky-price model that accounts for real exchange rate persistence by using the maximum-likelihood method using Canadian and U.S. data.
References
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Book
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.