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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Tax Reform and Labour-Market Performance in the Euro Area: A Simulation-Based Analysis Using the New Area-Wide Model
TL;DR: In this article, the authors employ a calibrated two-country version of the New Area-wide Model (NAWM) currently under development at the European Central Bank to examine the potential benefits and spillovers of reducing labour-market distortions caused by euro area tax structures.
Journal ArticleDOI
Why Does the Yield Curve Predict Output and Inflation
TL;DR: In this paper, the authors construct an analytical rational expectations model to investigate the reasons for the empirical results and suggest that the relationship are not structural but are instead influenced by the monetary policy regime.
ReportDOI
DSGE Models in a Data-Rich Environment
TL;DR: This article proposed an empirical framework for the estimation of dynamic stochastic general equilibrium (DSGE) models that exploits the relevant information from a data-rich environment, and applied this estimation approach to a state-of-the-art DSGE monetary model.
Journal ArticleDOI
Staggered Prices and Trend Inflation: Some Nuisances
TL;DR: This article showed that the long-run and short-run properties of DGE models based on the Calvo staggered price model change dramatically when trend inflation is considered, and that the Taylor model is to be preferred, unless one is willing to index nominal variables.
Journal ArticleDOI
Designing Targeting Rules for International Monetary Policy Cooperation
TL;DR: In this paper, the authors analyzed a two-country dynamic general equilibrium model with nominal rigidities, monopolistic competition and producer currency pricing and derived a quadratic approximation to the utility of the consumers.
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.