Optimal fiscal and monetary policy with sticky wages and sticky prices
نویسندگان
چکیده
منابع مشابه
Optimal Fiscal and Monetary Policy with Sticky Prices∗
In this paper, I study the properties of the Ramsey equilibrium in a model with distortionary taxation, nominal non-state-contingent debt, and costs of surprise inßation. To do this, I modify the standard cash-credit good economy studied in the optimal policy literature to include sticky prices. With this modiÞcation, the Ramsey planner must balance the shock absorbing beneÞts of surprise inßat...
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A wrong model can lead to a wrong conclusion. The failure to capture inflation dynamics has made the standard New Keynesian framework of monetary policy analysis prone to such a critique. In this paper, we investigate optimal monetary policy using a model that can capture the observed inflation persistence. The model, which we call the dual stickiness model, integrates sticky prices and sticky ...
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The steep increases in unemployment associated with the financial crisis and global recession of 2008–2009, and the widespread focus on unemployment in both the popular press and in policy debates, is in sharp contrast to the canonical new Keynesian model in which unemployment is noticeably absent. In that model, workers are never unemployed, and only hours worked per worker vary over the busin...
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ژورنال
عنوان ژورنال: Review of Economic Dynamics
سال: 2006
ISSN: 1094-2025
DOI: 10.1016/j.red.2006.07.001