Similar Search Results

Liquidity effects and habit formation in a sticky price model

Jung, Yongseung - In: International Economic Journal 18 (2001) 4, pp. 521-546

This paper sets up a sticky price model with external habit formations. It shows that the cross-correlation between output and interest rates as well as prices match the data well when there is habit formation. Consumption as well as output display a hump-shaped response to a positive monetary...

Persistent link: https://www.econbiz.de/10009223948

Welfare costs of shifting trend inflation

Nakata, Taisuke - In: Journal of Macroeconomics 41 (2014) C, pp. 66-78

This paper studies the welfare consequences of exogenous variations in trend inflation in a New Keynesian economy. Consumption and leisure respond asymmetrically to a rise and a decline in trend inflation. As a result, an increase in the variance of shocks to the trend inflation process...

Persistent link: https://www.econbiz.de/10010907070

Kinked Demand Curves, the Natural Rate Hypothesis, and Macroeconomic Stability

Kurozumi, Takushi; Zandweghe, Willem Van - In: Review of Economic Dynamics

large loss in steady-state output relative to its natural rate but also indeterminacy of equilibrium under the Taylor rule … is minor and preventing indeterminacy caused by high trend inflation. (Copyright: Elsevier) …

Persistent link: https://www.econbiz.de/10011262707

Bounded interest rate feedback rules in continuous-time

d'Albis, Hippolyte; Augeraud-Véron, Emmanuelle; … - In: Journal of Economic Dynamics and Control 39 (2014) C, pp. 227-236

This paper analyzes the dynamic consequences of interest rate feedback rules in a flexible-price model where money enters the utility function. Two alternative rules are considered based on past or predicted inflation rates. The main feature is to consider inflation rates that are selected over...

Persistent link: https://www.econbiz.de/10010744195

Increasing returns and unsynchronized wage adjustment in sunspot models of the business cycle

Huang, Kevin X.D.; Meng, Qinglai - In: Journal of Economic Theory 147 (2012) 1, pp. 284-309

A challenge to models of equilibrium indeterminacy based on increasing returns is that required increasing returns for … generating indeterminacy can be implausibly large and rise quickly with the relative risk aversion in labor. We show that … unsynchronized wage adjustment via a relative wage effect can both lower the required degree of increasing returns for indeterminacy …

Persistent link: https://www.econbiz.de/10010582581

Forward-looking monetary policy and anticipated shocks to inflation

Kapinos, Pavel - In: Journal of Macroeconomics 33 (2011) 4, pp. 620-633

explanations of the price puzzle—the cost channel of transmission of monetary policy and indeterminacy due to violation of the …

Persistent link: https://www.econbiz.de/10011065354

Non-separability and sectoral comovement in a sticky price model

Kim, Kwang Hwan; Katayama, Munechika - In: Journal of Economic Dynamics and Control 37 (2013) 9, pp. 1715-1735

This paper resolves the sectoral comovement problem between nondurable and durable outputs that arises in response to a monetary shock in a two-sector sticky price model with flexibly priced durable goods. We analytically demonstrate that the non-separability between aggregate consumption and...

Persistent link: https://www.econbiz.de/10010871002

Optimal long-run inflation rate in an open economy

Ishise, Hirokazu - In: European economic review : EER 148 (2022), pp. 1-17

Persistent link: https://www.econbiz.de/10013553352

Trend inflation and equilibrium stability : firm-specific versus homogeneous labor

Kurozumi, Takushi; Van Zandweghe, Willem - In: Macroeconomic dynamics 21 (2017) 4, pp. 947-981

Persistent link: https://www.econbiz.de/10011805418

Capital, credit constraints and the comovement between consumer durables and nondurables

Chen, Been-Lon; Liao, Shian-Yu - In: Journal of Economic Dynamics and Control 39 (2014) C, pp. 127-139

Evidence indicates that consumer durables are more flexibly priced than nondurable goods and services. In otherwise standard two-sector neoclassical sticky-price models with flexible durable prices, following monetary tightening, nondurables decrease but consumer durables increase. Friction in...

Persistent link: https://www.econbiz.de/10010744191

1
2
3
4
5
6
7
8
9
10
Next
Last