We provide empirical support for an analytical DSGE model with nominal wage stickiness where growth is driven by learning-by-doing and money shocks and their variance are allowed to impact on long-run output growth. In our theoretical model the variance of monetary shocks has a negative effect...

This paper tests some empirical implications of a theoretical model which proposes that the relationship between growth and its uncertainty depends fundamentally on whether the stochastic shocks causing fluctuations are real or nominal and on the presence of nominal rigidities in the economy....

A dynamic, stochastic optimizing macromodel with predetermined money wages and labour market monopoly power is used to examine the effect on current macroeconomic variables of a temporary increase in variability of the future money supply. As a benchmark, we show that under perfect wage-price...

A dynamic stochastic model of a small open monetary economy with infinitely-lived optimizing households is constructed. There are temporary nominal rigidities in the labour market, while in goods and asset markets prices are flexible. Optimizing behaviour in the foreign country is also modelled....

This paper explores the influence of inflation on economic growth both theoretically and empirically. We propose to merge an endogenous growth model of learning by doing with a New Keynesian one with sticky wages. We show that the intertemporal elasticity of substitution of working time is a key...

This paper proposes a new method in which banks and moneylenders can link in rural credit markets. Banks and moneylenders, two of the major lenders in rural credit markets, differ in their information on borrowers and costs of funds. Due to information constraints, banks must deny further loans...

We examine the issue of pricing futures and option contracts written on the Consumer Price Index (CPI), the change of which is a measure of inflation affecting the economy. Traditional approaches postulate an exogenous process for the price level and then derive CPI derivatives prices by...

A hosszú ciklus nyoma megtalálható az Egyesült Államok növekedési adataiban is. A dolgozat első része e ciklus elméletét és elmélettörténeti előzményeit foglalja össze. A második rész a ciklus meghatározásának nehézségeit és első eredményeit elemzi. A paraméterek...

A második világháború után fellendülő és a hetvenes évek közepén tetőző hosszú gazdasági hullám (a negyedik felismert Kondratyevciklus) leszálló ágának kényszerei szabják meg ma mindenütt a gazdasági élet rugalmas, de át nem hágható korlátait. Sok jel mutat azonban...

We study optimal monetary policy in a New Keynesian (NK) model with endogenous growth and knowledge spillovers external to each firm. We find that, in contrast with the standard NK model, the Ramsey dynamics implies deviation from full inflation targeting in response to technology and government...