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
The Procyclical Effects of Basel II
TL;DR: In this paper, the authors analyze the cyclical effects of moving from risk-insensitive (Basel I) to risk-sensitive (basel II) capital requirements in the context of a dynamic equilibrium model of relationship lending in which banks are unable to access the equity markets every period.
ReportDOI
Putting "M" Back in Monetary Policy
TL;DR: The authors show that the way money is modeled significantly changes the size of output and inflation effects, and the degree of inertia that inflation exhibits following a policy shock, and they offer a simple and conventional economic interpretation of these empirical facts.
Journal ArticleDOI
Real exchange rate persistence and monetary policy rules
TL;DR: In this article, the effects of alternative monetary rules on real exchange rate persistence were analyzed using a two-country stochastic dynamic general equilibrium with nominal price stickiness and local currency pricing.
Journal ArticleDOI
Central bank communication and expectations stabilization
Stefano Eusepi,Bruce Preston +1 more
TL;DR: In this paper, the value of communication in monetary policy is analyzed in a model in which expectations need not be consistent with central bank policy, and therefore, are unanchored and self-ful.
Book ChapterDOI
Exchange-Rate Based Stabilisation under Imperfect Credibility
TL;DR: In the late 1970s, the Southern-Cone countries comprising Argentina, Chile and Uruguay launched stabilisation programmes based on a pre-announced path for the exchange rate that exhibited a declining rate of devaluation as discussed by the authors.
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.