Similar Search Results

Productivity Growth and the Phillips Curve

Ball, Laurence; Moffitt, Robert - National Bureau of Economic Research (NBER) - 2001

We present a model in which workers' aspirations for wage increases adjust slowly to shifts in productivity growth. The model yields a Phillips curve with a new variable: the gap between productivity growth and an average of past wage growth. Empirically, this variable shows up strongly in the...

Persistent link: https://www.econbiz.de/10005718296

What Determines the Sacrifice Ratio?

Ball, Laurence - National Bureau of Economic Research (NBER) - 1993

This paper investigates the determinants of the "sacrifice ratio" for disinflation: the ratio of the loss in output to the fall in trend inflation. I develop a method for estimating the sacrifice ratio in individual disinflation episodes, and apply it to 65 episodes in moderate-inflation OECD...

Persistent link: https://www.econbiz.de/10005720902

Inventories, Markups, and Real Rigidities in Menu Cost Models

Kryvtsov, Oleksiy; Midrigan, Virgiliu - National Bureau of Economic Research (NBER) - 2009

Real rigidities that limit the responsiveness of real marginal cost to output are a key ingredient of sticky price models necessary to account for the dynamics of output and inflation. We argue here, in the spirit of Bils and Kahn (2000), that the behavior of marginal cost over the cycle is...

Persistent link: https://www.econbiz.de/10005828424

A Monetary Explanation of the Great Stagflation of the 1970s

Kilian, Lutz; Barsky, Robert - National Bureau of Economic Research (NBER) - 2000

The origins of stagflation and the possibility of its recurrence continue to be an important concern among policymakers and in the popular press. It is common to associate the origins of the Great Stagflation of the 1970s with the two major oil price increases of 1973/74 and 1979/80. This paper...

Persistent link: https://www.econbiz.de/10005777438

Sticky-Price Models of the Business Cycle: Specification and Stability

Ireland, Peter - National Bureau of Economic Research (NBER) - 2000

This paper focuses on the specification and stability of a dynamic, stochastic, general equilibrium model of the American business cycle with sticky prices. Maximum likelihood estimates reveal that the data prefer a version of the model in which adjustment costs apply to the price level but not...

Persistent link: https://www.econbiz.de/10005778529

The Term Structure of Real Rates and Expected Inflation

Ang, Andrew; Bekaert, Geert; Wei, Min - National Bureau of Economic Research (NBER) - 2007

Changes in nominal interest rates must be due to either movements in real interest rates, expected inflation, or the inflation risk premium. We develop a term structure model with regime switches, time-varying prices of risk, and inflation to identify these components of the nominal yield curve....

Persistent link: https://www.econbiz.de/10005088590

Some Evidence on the Importance of Sticky Prices

Bils, Mark Joseph; Klenow, Peter J. - National Bureau of Economic Research (NBER) - 2002

We examine the frequency of price changes for 350 categories of goods and services covering about 70% of consumer spending, based on unpublished data from the BLS for 1995 to 1997. Compared with previous studies we find much more frequent price changes, with half of prices lasting less than 4.3...

Persistent link: https://www.econbiz.de/10005050249

Robustness of the Estimates of the Hybrid New Keynesian Phillips Curve

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

Galí and Gertler (1999) developed a hybrid variant of the New Keynesian Phillips curve that relates inflation to real marginal cost, expected future inflation and lagged inflation. GMM estimates of the model suggest that forward looking behavior is dominant: The coefficient on expected future...

Persistent link: https://www.econbiz.de/10005050432

Global Forces and Monetary Policy Effectiveness

Boivin, Jean; Giannoni, Marc P. - National Bureau of Economic Research (NBER) - 2008

with global factors, there is little evidence suggesting that these factors have become systematically more important. We … don't find strong evidence of a change in the transmission mechanism of monetary policy due to global forces. Taking our … point estimates literally, global forces do not seem to have played an important role in the US monetary transmission …

Persistent link: https://www.econbiz.de/10005050455

News Shocks

Barsky, Robert B.; Sims, Eric R. - National Bureau of Economic Research (NBER) - 2009

We implement a new approach for the identification of "news shocks" about future technology. In a VAR featuring a measure of aggregate technology and several forward-looking variables, we identify the news shock as the shock orthogonal to technology innovations that best explains future...

Persistent link: https://www.econbiz.de/10005027105