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
Limited information capacity as a source of inertia
TL;DR: In this paper, the authors derive optimal time-dependent adjustment rules from Shannon's (1948) information theory for continuous-time LQ prediction problem with a costly rate of information acquisition-processing.
Journal ArticleDOI
Avoiding Liquidity Traps
Jess Benhabib,Jess Benhabib,Stephanie Schmitt-Grohé,Stephanie Schmitt-Grohé,Martín Uribe,Martín Uribe +5 more
TL;DR: This paper proposed several fiscal and monetary policies that preserve the appealing features of Taylor rules, such as local uniqueness of equilibrium near the inflation target, and at the same time rule out the deflationary expectations that can lead an economy into a liquidity trap.
Journal ArticleDOI
On the optimal monetary policy response to noisy indicators
TL;DR: In this paper, the authors describe a behavior of a central bank when its measures of current inflation and output are subject to measurement errors, in a framework of optimizing models with nominal price stickiness.
Posted ContentDOI
More on Unemployment and Vacancy Fluctuations
TL;DR: This article argued that the main problem of the Mortensen-Pissarides equilibrium search model is neither the procyclicality of the wage nor the failure to account fully for the opportunity cost of employment.
Journal ArticleDOI
Monetary Policy Rules for an Open Economy
TL;DR: In this article, the authors specify and evaluate a comprehensive set of simple monetary policy rules that are suitable for small open economies in general, and for the United Kingdom in particular, by examining the performance of a battery of simple rules, including the familiar Taylor rule and MCI-based rules a la Ball.
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.