Staggered price-setting, staggered wage-setting, and business cycle persistence
نویسندگان
چکیده
منابع مشابه
Staggered Price-Setting, Staggered Wage-Setting, and Business Cycle Persistence∗
Staggered price-setting and staggered wage-setting are commonly viewed as similar mechanisms in generating persistent real effects of monetary shocks. In this paper, we distinguish the two mechanisms in a dynamic stochastic general equilibrium framework. We show that, although the dynamic pricesetting and wage-setting equations are alike, a key parameter governing persistence is linked to the u...
متن کاملStaggered Contracts and Business Cycle Persistence
Staggered price and staggered wage contracts are commonly viewed as similar mechanisms in generating persistent real effects of monetary shocks. In this paper, we distinguish the two mechanisms in a dynamic stochastic general equilibrium framework. We show that, although the dynamic price setting and wage setting equations are alike, a key parameter governing persistence is linked to the underl...
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The paper examines the optimal monetary policy when firms are constrained by information processing capability and infrequent price adjustments. Firms' information processing limit gives rise to imperfect knowledge about macroeconomic aggregates and endogenous information learning contingent on the monetary policy. Staggered price setting introduces the observed price duration and additional po...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2002
ISSN: 0304-3932
DOI: 10.1016/s0304-3932(01)00109-x