Calvo (1983) wage and price contracts may deliver welfare costs that are 3-4 times higher than Taylor (1980) contracts …What is the role of contracting schemes for the welfare costs of nominal rigidities over the business cycle? We examine … adopting the Mankiw and Reis (2002) sticky information scheme for the welfare costs of nominal rigidities. …

have the same average duration of contracts. Calvo (1983) wage and price contracts can deliver sizeable welfare costs, but … other contracts of the same average stickiness cannot. Calvo (1983) contracts can imply welfare costs that are up to 4 times … account for the average welfare costs of business cycle fluctuations identified in Gali, Gertler, and Lopez- Salido (2003 …

The Generalized Calvo and the Generalized Taylor model of price and wage-setting are, unlike the standard Calvo and … Taylor counter-parts, exactly consistent with the distribution of durations observed in the data. Using price and wage micro … monetary policy transmission by embedding these calibrated models in a standard DSGE model. The Generalized Taylor model is …

We estimate and compare two models, the Generalized Taylor Economy (GTE) and the Multiple Calvo model (MC); that have … to those of the standard models such as the Calvo and its popular variant, using the ad hoc device of indexation. The …

The Generalized Calvo and the Generalized Taylor models of price and wage-setting are, unlike the standard Calvo and … Taylor counter-parts, exactly consistent with the distribution of durations observed in the data. Using price and wage micro … monetary policy transmission by embedding these calibrated models in a standard DSGE model. The Generalized Taylor model is …

We estimate and compare two models, the Generalized Taylor Economy (GTE) and the Multiple Calvo model (MC), that have … to those of the standard models such as the Calvo and its popular variant, using the ad hoc device of indexation. The …

We develop the Generalized Taylor Economy (GTE) in which there are many sectors with overlapping contracts of di …. When we choose a GTE with the same distribution of completed contract lengths as the Calvo, the economies behave in a …

In this paper we develop the Generalized Taylor Economy (GTE) in which there are many sectors with overlapping … longer contracts are present. We are able to solve the puzzle of why Calvo contracts appear to be more persistent than simple … Taylor contracts: it arises because of the distribution of contract lengths. When we choose a GTE with the same distribution …

the public sector under different exchange rate regimes affect macroeconomic stability and welfare? In response to a … exchange rate peg exhibits the largest macroeconomic volatility and highest welfare losses. …

unanticipated shocks of equal size news shocks behave in a welfare-enhancing manner, and (2) purely history-dependent monetary … policy rules do not constitute an effective monetary instrument to keep welfare losses to a minimum. …