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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Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations?
TL;DR: In this article, the authors estimate a decomposition of productivity and hours into technology and non-technology components, and show that hours show a persistent decline in response to a positive technology shock.
Journal ArticleDOI
The New Neoclassical Synthesis and the Role of Monetary Policy
TL;DR: In this paper, the authors describe the key features of the new synthesis and its implications for the role of monetary policy and find that the New Neoclassical Synthesis rationalizes an activist monetary policy which is a simply system of inflation targets.
Posted Content
Monetary Policy and Asset Price Volatility
TL;DR: In this paper, the implications of asset price volatility for the management of monetary policy are explored and it is shown that it is desirable for central banks to focus on underlying inflationary pressures.
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Open-economy inflation targeting
TL;DR: The authors examined inflation targeting in a small open economy with forward-looking aggregate supply and demand with microfoundations, and with stylized realistic lags in the different monetary-policy transmission channels.
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Macroeconomic Expectations of Households and Professional Forecasters
TL;DR: The authors showed that while empirical household expectations are not rational in the usual sense, expectational dynamics are well captured by a model in which households' views derive from news reports of the views of professional forecasters, which in turn may be rational.
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.