Staggered Contracts and Business Cycle Persistence

Kevin Huang () and Zheng Liu

Working Papers from Minnesota - Center for Economic Research

Abstract: Staggered price and Staggered wage mechanisms are commonly viewed similar in generating persistent real effects of monetary shocks. In this paper, we distinguish these two mechanisms with individuals's optimizing behavior being explicitly taken into account. We show that, although the dynamic price and wage setting equations are alike, a key parameter governing persistence in these two equations is linked to the underlying preferences and technologies in very different ways.

Keywords: MONETARY POLICY; BUSINESS CYCLES (search for similar items in EconPapers)
JEL-codes: E32 E52 (search for similar items in EconPapers)
Pages: 38 pages
Date: 1999
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Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Staggered Contracts and Business Cycle Persistence (1998)
Working Paper: Staggered contracts and business cycle persistence (1998)
Working Paper: Staggered contracts and business cycle persistence
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Persistent link: https://EconPapers.repec.org/RePEc:fth:minner:305

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