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...

We would like to thank Professors George A. Akerlof (University of California, Berkeley), Souichi Ohta (Nagoya University), Terukazu Suruga (Osaka Prefecture University), Janet L. Yellen (University of California, Berkeley), and Kazuhiro Yuuki (Kyoto University), and participants of the seminars at the Kansai Institute for Social and Economic Research, Keio University, the CIRJE/TCER Macro Conf...

Recent developments in the asset pricing literature show that a combination of technology and distributive shocks can rationalize observed risk premia when firm ownership is concentrated hands few households. We find are unnecessary nominal price rigidity taken into account. Our results driven by income redistribution associated to procyclical variations profit margins firms concentrated, price...

We establish a new empirical finding that the intensity of search for the best price affects the frequency of nominal price changes. This relationship holds in very different economies and for various proxies for search intensity. We show that it can be derived from a simple model of monopolistically competitive firms that face menu costs of changing nominal prices and heterogeneous consumers w...

We study the implications of trend inflation for an economy’s long-run growth rate. To do so, we extend a New Keynesian model to allow for endogenous growth. The defining characteristic of the New Keynesian framework is that inflation and nominal price stickiness together induce relative price dispersion and thus reduce monopoly profits. When the framework is embedded in an endogenous growth mo...

Abstract We revisit the question of why shifts in aggregate demand drive business cycles. Our theory combines intertemporal substitution production with rational confusion, or bounded rationality, consumption and investment. The first element allows supply to respond without nominal rigidity. second introduces a “confidence multiplier,” that is, positive feedback loop between real economic acti...

We study the causal effects of downward nominal wage rigidity after a deflationary monetary policy shock using Swiss data on employee-level contractual wages matched with income and employment from social security register data. exploit discontinuity around origin growth distribution to compare outcomes individuals freezes (treatment group) small cuts (control before an unexpected decision by N...

L-tyrosine, B6 and folic acid are involved in biosynthesis of DOPA and consequently dopamine. The aim of this study was to investigate the antiparkinsonian effect of these agents in perphenazine-induced catatonia in rats. Murprogo method or scored muscular rigidity, which is induced by a phenothiazine, was used to evaluate the antiparkinsonian effect of these agents. A significant decrease in m...