Optimising Agents, Staggered Wages and Persistence in the Real Effects of Money Shocks

Guido Ascari

Economic Journal, 2000, vol. 110, issue 465, 664-86

Abstract: In this paper we incorporate Taylor's (1979) staggered wage setting into an optimising dynamic general equilibrium framework to study whether staggered wages could induce a high degree of persistence in the real effects of money shocks. We conclude that high persistence is an unlikely outcome. Sensible values of the microeconomic parameters and/or a moderate rate of underlying inflation imply a low degree of persistence. Furthermore, once explicit microfoundations are taken into account, we show that: (i) the model is highly non-linear; (ii) the inertia of the system is inversely related to the level of average inflation.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (114)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: OPTIMISING AGENTS, STAGGERED WAGES AND PERSISTENCE IN THE REAL EFFECTS OF MONEY SHOCKS (1997)
Working Paper: Optimizing Agents, Staggered Wages and Persistence in the Real Effects of Money Shocks (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecj:econjl:v:110:y:2000:i:465:p:664-86

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0013-0133

Access Statistics for this article

Economic Journal is currently edited by Martin Cripps, Steve Machin, Woulter den Haan, Andrea Galeotti, Rachel Griffith and Frederic Vermeulen

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().