Nominal rigidities and the dynamic effects of a shock to monetary policy
Lawrence Christiano (),
Martin Eichenbaum () and
Charles Evans ()
No 107, Working Papers (Old Series) from Federal Reserve Bank of Cleveland
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)
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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)
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)
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