منابع مشابه
Financial integration, nominal rigidity, and monetary policy
Article history: Received 8 August 2011 Received in revised form 23 May 2012 Accepted 31 May 2012 Available online 13 June 2012 This paper shows that financial integration may reduce welfare in the presence of nominal price rigidity. From a policy perspective, the model implies that developing countries that are experiencing financial integration may attempt to alleviate the welfare cost of int...
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Abstract In this paper, I explore the effects nominal rigidities and monetary policies have on the generation of Pigou cycles, that is, business cycles driven by agents’ expectations of future technology. The optimal response of the central bank is analyzed under circumstances when agents receive a signal indicating the technology change in the future. To achieve these objectives, I introduce n...
متن کاملOptimal Discretionary Monetary Policy under Downward Nominal Wage Rigidity
We study the implications for optimal monetary policy when declining nominal wages is not a viable margin for adjustment to adverse economic conditions. To this end, we develop a New Keynesian model where downward nominal wage rigidity arises endogenously. We show that the optimal policy response to changing economic conditions is asymmetric. Another important finding is that downward nominal r...
متن کاملMonetary Policy, Nominal Interest Rates, and Long-horizon Inflation Uncertainty
Empirical evidence presented in this paper shows that the predictability of inflation at long horizons varies considerably across countries. Both simple theory and empirical evidence suggest that the crucial factor is the extent to which systematic monetary policy succeeds in stabilising the incipient unit root in inflation. The mechanism by which it does this appears however to be complicated ...
متن کاملMicro Data on Nominal Rigidity, Inflation Persistence and Optimal Monetary Policy
The popular Calvo model with indexation (Christiano, Eichenbaum and Evans (2005)) and sticky information (Mankiw and Reis (2002)) models have guided much of the monetary policy discussion. The strength of these approaches is that they can explain the persistence of inflation. However, both of these theories are inconsistent with the micro data on prices. In this paper, I evaluate the consequenc...
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ژورنال
عنوان ژورنال: European Economic Review
سال: 1998
ISSN: 0014-2921
DOI: 10.1016/s0014-2921(96)00061-x