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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Discretionary Monetary Policy and the Zero Lower Bound on Nominal Interest Rates
TL;DR: In this article, a stochastic forward-looking model with an occasionally binding lower bound, calibrated to the U.S. economy, suggests that low values for the natural rate of interest lead to sizeable output losses and deflation under discretionary monetary policy.
Journal ArticleDOI
Limited asset markets participation, monetary policy and (inverted) aggregate demand logic
TL;DR: The authors developed a simple analytical framework for monetary policy analysis and showed that the aggregate dynamics and stability properties of an otherwise standard business cycle model depend nonlinearly on the degree of asset market participation.
Posted Content
Fiscal Stimulus with Spending Reversals
TL;DR: The authors analyzes the effects of an increase in government spending under a plausible debt-stabilizing policy that links current stimulus to a subsequent period of spending restraint, and finds that time series evidence for the U.S. economy supports the empirical relevance of spending reversals.
Journal ArticleDOI
Monetary policy, expectations and commitment
George W. Evans,Seppo Honkapohja +1 more
TL;DR: In this article, a number of interest-rate reaction functions and instrument rules have been proposed to implement or approximate commitment policy, and the authors assess these rules in terms of whether they lead to a rational expectations equilibrium that is both locally determinate and stable under adaptive learning by private agents.
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Information-constrained state-dependent pricing
TL;DR: In this article, a model is presented in which decisions about when to review a firm's existing price must be made on the basis of imprecise awareness of current market conditions.
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.