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
Is there a unit root in the inflation rate? evidence from sequential break and panel data models
Sarah E. Culver,David H. Papell +1 more
TL;DR: Using sequential trend break and panel data models, this paper investigated the unit root hypothesis for the inflation rates of thirteen OECD countries and found evidence of stationarity in only four of the thirteen countries.
Journal ArticleDOI
Optimal monetary policy with durable consumption goods
TL;DR: In this article, a two-sector general equilibrium model is proposed to match the sectoral responses to a monetary shock derived from empirical VAR and to imply an empirically realistic degree of sectoral output volatility and comovement.
Journal ArticleDOI
The effects of fiscal shocks on employment and the real wage
TL;DR: In this paper, the authors employ a structural VAR and base identification on the restrictions that shocks to government consumption, investment, and employment must raise output and deficits, and show that these restrictions hold in both prototype Real Business Cycle (RBC) and New Keynesian models.
Journal ArticleDOI
Is there a fiscal free lunch in a liquidity trap
TL;DR: In this paper, the authors used a DSGE model to examine the effect of an expansion in government spending in a liquidity trap and found that the multiplier of government spending can be much larger than in the normal situation if the liquidity trap is very persistent, and the …scal stimulus can be rapidly implemented.
Book ChapterDOI
Legal Structure, Financial Structure, and the Monetary Policy Transmission Mechanism
TL;DR: In this paper, the making of policy in the face of the possibility that it will have differential impacts across the countries of the Euro Area has been discussed in the context of the European System of Central Banks (ESCB).
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.