Similar Search Results

Notes for a New Guide to Keynes (I): Wages, Aggregate Demand, and Employment

Gali, Jordi - National Bureau of Economic Research (NBER) - 2012

I revisit the General Theory's discussion of the role of wages in employment determination through the lens of the New Keynesian model. The analysis points to the key role played by the monetary policy rule in shaping the link between wages and employment, and in determining the welfare impact...

Persistent link: https://www.econbiz.de/10010969433

Technology Shocks and Aggregate Fluctuations: How Well Does the RBS Model Fit Postwar U.S. Data?

Gali, Jordi; Rabanal, Pau - National Bureau of Economic Research (NBER) - 2004

Our answer: not so well. We reach that conclusion after reviewing recent research on the role of technology as a source of economic fluctuations. The bulk of the evidence suggests a limited role for aggregate technology shocks, pointing instead to demand factors as the main force behind the...

Persistent link: https://www.econbiz.de/10005108420

Macroeconomic Modeling for Monetary Policy Evaluation

Gali, Jordi; Gertler, Mark - National Bureau of Economic Research (NBER) - 2007

We describe some of the main features of the recent vintage macroeconomic models used for monetary policy evaluation. We point to some of the key differences with respect to the earlier generation of macro models, and highlight the insights for policy that these new frameworks have to offer. Our...

Persistent link: https://www.econbiz.de/10005084740

Real Wage Rigidities and the New Keynesian Model

Blanchard, Olivier; Gali, Jordi - National Bureau of Economic Research (NBER) - 2005

Most central banks perceive a trade-off between stabilizing inflation and stabilizing the gap between output and … inflation is equivalent to stabilizing the welfare-relevant output gap. In this paper, we argue that this property of the new … a trade-off between stabilizing inflation and stabilizing the welfare-relevant output gap. We show that not only does …

Persistent link: https://www.econbiz.de/10005085258

Understanding the Effects of Government Spending on Consumption

Gali, Jordi; Lopez-Salido, J. David; Vallés, Javier - National Bureau of Economic Research (NBER) - 2005

Recent evidence suggests that consumption rises in response to an increase in government spending. That finding cannot be easily reconciled with existing optimizing business cycle models. We extend the standard new Keynesian model to allow for the presence of rule-of-thumb consumers. We show how...

Persistent link: https://www.econbiz.de/10005085419

Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations

Gali, Jordi - National Bureau of Economic Research (NBER) - 1996

Using data for the G7 countries, I estimate conditional correlations of employment and productivity, based on a decomposition of the two series into technology and non-technology components. The picture that emerges is hard to reconcile with the predictions of the standard Real Business Cycle...

Persistent link: https://www.econbiz.de/10005775137

The Macroeconomic Effects of Oil Shocks: Why are the 2000s So Different from the 1970s?

Blanchard, Olivier; Gali, Jordi - National Bureau of Economic Research (NBER) - 2007

for the mild effects on inflation and economic activity of the recent increase in the price of oil: (a) good luck (i …

Persistent link: https://www.econbiz.de/10005829032

Trends in Hours, Balanced Growth, and the Role of Technology in the Business Cycle

Gali, Jordi - National Bureau of Economic Research (NBER) - 2005

The present paper revisits a property embedded in most dynamic macroeconomic models: the stationarity of hours worked. First, I argue that, contrary to what is often believed, there are many reasons why hours could be nonstationary in those models, while preserving the property of balanced...

Persistent link: https://www.econbiz.de/10005829133

On the Sources of the Great Moderation

Gali, Jordi; Gambetti, Luca - National Bureau of Economic Research (NBER) - 2008

The remarkable decline in macroeconomic volatility experienced by the U.S. economy since the mid-80s (the so-called Great Moderation) has been accompanied by large changes in the patterns of comovements among output, hours and labor productivity. Those changes are reflected in both conditional...

Persistent link: https://www.econbiz.de/10005830856

Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory

Clarida, Richard H.; Gali, Jordi; Gertler, Mark - National Bureau of Economic Research (NBER) - 1998

the Volcker-Greenspan period appears to have been much more sensitive to changes in expected inflation than in the pre …-Volcker period. We then compare some of the implications of the estimated rules for equilibrium properties of inflation and output …-fulfilling fluctuations in inflation and output. In contrast, the Volcker-Greenspan rule is stabilizing. …

Persistent link: https://www.econbiz.de/10005718672