Aggregation and Optimization with State-Dependent Pricing: A Comment

Vladislav Damjanovic and Charles Nolan

Econometrica, 2006, vol. 74, issue 2, 565-573

Abstract: A key argument in Caplin and Leahy (1997) states that the correlation between monetary shocks and output is falling in the variance of the money supply. We demonstrate that this conclusion depends on solving for the correlation in the nonstationary state of the model. In the stationary state, that correlation is initially rising. Copyright The Econometric Society 2006.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1111/j.1468-0262.2006.00672.x link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
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:ecm:emetrp:v:74:y:2006:i:2:p:565-573

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues
econometrica@econometricsociety.org

Access Statistics for this article

Econometrica is currently edited by Guido Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery (contentdelivery@wiley.com).