contracts appear to be more persistent than simple Taylor contracts: it is because the standard calibration of Calvo contracts …n this paper we develop the Generalize Taylor Economy (GTE) in which there are many sectors with overlapping contracts … will be more persistent when there are longer contracts. In particular we are able to solve the puzzle of why Calvo …

I embed the pricing model proposed by Dixon and Kara (2011a, b) (i.e. a Generalized Taylor Economy (GTE)) into a state …

the assessment of the welfare costs of nominal rigidities and the performance of alternative monetary policy rules in an … scheme matters quantitatively for the welfare costs of nominal rigidities. However, qualitative statements such as the … welfare ranking of alternative monetary policy rules are robust to changes in contracting schemes. The difference between …

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. …

those of the original Poole analysis. This is also confirmed when considering welfare. In particular, an interest rate rule … foreign shocks, welfare improves under an interest rate rule relative to a money supply rule when real shocks are considered …

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. …

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. …