Nominal rigidities and the dynamic effects of a shock to monetary policy

Lawrence Christiano (), Martin Eichenbaum () and Charles L. Evans ()

No 107, Working Paper from Federal Reserve Bank of Cleveland

Abstract: The authors’ model, embodying moderate amounts of nominal rigidities, accounts for the observed inertia in inflation and persistence in output. The key features of their model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average duration (three quarters) and variable capital utilization.

Keywords: Inflation (Finance); Monetary policy; Wages (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mon
Date: 2001
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Related works:
Working Paper: Nominal rigidities and the dynamic effects of a shock to monetary policy (2001)
Working Paper: Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy (2001)
Journal Article: Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy (2005)
Journal Article: Nominal rigidities and the dynamic effects of a shock to monetary policy (2001)
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Persistent link: http://EconPapers.repec.org/RePEc:fip:fedcwp:0107

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