EconPapers    
Economics at your fingertips  
 

Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy

Lawrence Christiano (), Martin Eichenbaum () and Charles Evans ()

No 8403, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We present a model embodying moderate amounts of nominal rigidities which accounts for the observed inertia in inflation and persistence in output. The key features of our 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.

JEL-codes: E3 E4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-mon
Date: 2001-07
Note: EFG ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (438) Track citations by RSS feed

Published as Christiano, Lawrence J., Martin Eichenbaum, and Charles L. Evans. 2005. "Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy," Journal of Political Economy, 113(1): 1-45, February 2005
Published as Lawrence J. Christiano & Martin Eichenbaum & Charles Evans, 2001. "Nominal rigidities and the dynamic effects of a shock to monetary policy," Proceedings, Federal Reserve Bank of San Francisco, issue Jun.

Downloads: (external link)
http://www.nber.org/papers/w8403.pdf (application/pdf)

Related works:
Journal Article: Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy (2005) Downloads
Journal Article: Nominal rigidities and the dynamic effects of a shock to monetary policy (2001) Downloads
Working Paper: Nominal rigidities and the dynamic effects of a shock to monetary policy (2001) Downloads
Working Paper: Nominal rigidities and the dynamic effects of a shock to monetary policy (2001) Downloads
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:nbr:nberwo:8403

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w8403

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-09-29
Handle: RePEc:nbr:nberwo:8403