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

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)
Date: 2001
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (521)

Downloads: (external link)
https://doi.org/10.26509/frbc-wp-200107 Persistent link
https://www.clevelandfed.org/-/media/project/cleve ... amic-effects-pdf.pdf Full text (application/pdf)

Related works:
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)
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:fip:fedcwp:0107

Ordering information: This working paper can be ordered from

DOI: 10.26509/frbc-wp-200107

Access Statistics for this paper

More papers in Working Papers (Old Series) from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by 4D Library ().