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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Can Rational Expectations Sticky-Price Models Explain Inflation Dynamics?
Jeremy B. Rudd,Karl Whelan +1 more
TL;DR: The authors show that the hybrid model describes inflation dynamics poorly, and find little empirical evidence for the type of rational, forward-looking behavior that the model implies, which is not the case in our model.
Journal ArticleDOI
Targeting nominal income growth or inflation
TL;DR: In this paper, a simple New Keynesian model emphasizing forward-looking behavior of private agents was used to evaluate optimal nominal income growth targeting versus optimal inflation targeting, and it was shown that when the economy is mainly subject to shocks that do not involve monetary policy trade-offs for society, inflation targeting is preferable.
Posted Content
Timeless Perspectives vs. Discretionary Monetary Policy in Forward-Looking Models
TL;DR: The distinction between the timeless perspective and discretionary modes of monetary policymaking, the former representing rule-based policy as recently formalized by Woodford (1999b), was discussed in this paper.
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On DSGE Models
TL;DR: This article reviewed the state of DSGE models before the financial crisis and the Great Recession and then described how they are estimated and evaluated to assess the relative strength of the forces operating on different parts of the economy.
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.