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

Slow Recoveries: A Structural Interpretation

Gali, Jordi; Smets, Frank Rafael; Wouters, Rafael - National Bureau of Economic Research (NBER) - 2012

An analysis of the performance of GDP, employment and other labor market variables following the troughs in postwar U.S. business cycles points to much slower recoveries in the three most recent episodes, but does not reveal any significant change over time in the relation between GDP and...

Persistent link: https://www.econbiz.de/10011271421

Labor Markets and Monetary Policy: A New-Keynesian Model with Unemployment

Blanchard, Olivier; Gali, Jordi - National Bureau of Economic Research (NBER) - 2008

for the unemployment-inflation tradeoff and for the conduct of monetary policy.<br><br>We proceed in two steps. We first … setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence … of labor market frictions and real wage rigidities. We show the nature of the tradeoff between inflation and unemployment …

Persistent link: https://www.econbiz.de/10005248798

Rule-of-Thumb Consumers and the Design of Interest Rate Rules

Gali, Jordi; Lopez-Salido, J. David; Valles, Javier - National Bureau of Economic Research (NBER) - 2004

We introduce rule-of-thumb consumers in an otherwise standard dynamic sticky price model, and show how their presence can change dramatically the properties of widely used interest rate rules. In particular, the existence of a unique equilibrium is no longer guaranteed by an interest rate rule...

Persistent link: https://www.econbiz.de/10005248857

Non-Walrasian Unemployment Fluctuations

Gali, Jordi - National Bureau of Economic Research (NBER) - 1995

We modify the standard real business cycle model by assuming that wages are set by a monopoly union at the firm level. In the context of such a model, we introduce a measure of unemployment and analyze its equilibrium behavior. We show that a calibrated version of the model is capable of...

Persistent link: https://www.econbiz.de/10005248933

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

Monetary Policy and Unemployment

Gali, Jordi - National Bureau of Economic Research (NBER) - 2010

Much recent research has focused on the development and analysis of extensions of the New Keynesian framework that model labor market frictions and unemployment explicitly. The present paper describes some of the essential ingredients and properties of those models, and their implications for...

Persistent link: https://www.econbiz.de/10008635930

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