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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Optimal Monetary Policy Under Commitment with a Zero Bound on Nominal Interest Rates
TL;DR: In this article, the authors compute the optimal non-linear interest rate policy under commitment for a forward-looking stochastic model with monopolistic competition and sticky prices when nominal interest rates are bounded below by zero.
Journal ArticleDOI
Expansionary Fiscal Shocks and the US Trade Deficit
TL;DR: In this paper, the authors examined the effects of two alternative fiscal shocks: a rise in government consumption and a reduction in the labour income tax rate on the trade balance in the United States.
Posted Content
New Monetarist Economics: Models
TL;DR: In this article, the authors discuss some of the models used in New Monetarist economics, which is our label for a body of recent work on money, banking, payments systems, asset markets, and related topics.
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Monetary Policy, Trend Inflation, and the Great Moderation: An Alternative Interpretation
TL;DR: Gorodnichenko et al. as discussed by the authors provided new theoretical results on restoring determinacy in New Keynesian models with positive trend inflation and combine these with new empirical findings on the Federal Reserve's reaction function before and after the Volcker disinflation to find that while the Fed satisfied the Taylor principle in the pre-Volcker era, the US economy was still subject to self-fulfilling fluctuations in the 1970s.
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How do fiscal and technology shocks affect real exchange rates?: New evidence for the United States
TL;DR: In this article, the authors used vector autoregressions on U.S. time series relative to an aggregate of industrialized countries to provide new evidence on the dynamic effects of government spending and technology shocks on the real exchange rate and the terms of trade.
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.