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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Monetary and Fiscal Policy Interactions in a Micro-Funded Model of a Monetary Union
TL;DR: In this paper, the authors focus on the interactions between monetary and fiscal policy in a micro-founded model of monetary union and find that the forward-looking Phillips curves depend on consumption, terms of trade and public spending deviations from their respective stochastic natural rates.
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How the World Achieved Consensus on Monetary Policy
TL;DR: In this paper, the authors describe how the world achieved a working consensus on the core principles of monetary policy, including the priority for price stability, the targeting of core rather than headline inflation, and the importance of credibility for low inflation.
Journal ArticleDOI
Price Setting during Low and High Inflation: Evidence from Mexico
TL;DR: In this paper, the authors examined a large data set of Mexican consumer prices covering episodes of both low and high inflation and found that both the frequency and average magnitude of price changes are important determinants of inflation.
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Sticky Prices in the Euro Area: A Summary of New Micro-Evidence
Luis J. Álvarez,Emmanuel Dhyne,Marco Hoeberichts,Claudia Kwapil,Hervé Le Bihan,Patrick Lünnemann,Fernando Martins,Roberto Sabbatini,Harald Stahl,Philip Vermeulen,Jouko Vilmunen +10 more
TL;DR: In this paper, the authors summarized the vast evidence on micro price-setting recently obtained for euro area countries and concluded that prices in the euro area are sticky and stickier than in the US.
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The return of the wage Phillips curve
TL;DR: In this paper, the standard New Keynesian model with a staggered wage setting is shown to imply a simple dynamic relation between wage inflation and unemployment, and that relation takes a form similar to that found in empirical applications and may thus be viewed as providing some theoretical foundations to the latter.
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.
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"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.