Nominal Rigidities
Changes in nominal rigidities in Poland – a regime switching DSGE perspective
... Dynamic stochastic general equilibrium models (DSGE) are the cornerstone of modern macroeconomics. These models have traditionally been based on microeco- nomic assumptions on the intertemporal optimizing behaviors of ...
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Credit market imperfections, nominal rigidities, and business cycles
... framework exhibits non-neutrality of monetary policy is the interest rate channel. In the presence of nominal rigidities, changes in the nominal interest rate are re‡ected in the real interest rate. ...
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Deep Habits, Nominal Rigidities and Interest Rate Rules
... I am considering a model economy that features optimizing households and a continuum of profit maximizing firms producing intermediate goods. This is a canonical new-Keynesian model with investment and the only departure ...
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Note on nominal rigidities and news driven business cycles
... NDBCs are not generated in the baseline model if there are no nominal rigidities. Then, which rigidity is important for NDBCs? In order to address this question, we consider the sticky-price economy (wages ...
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Asset Prices, Nominal Rigidities, and Monetary Policy: Role of Price Indexation
... A recent paper by Carlstrom and Fuerst [“Asset Prices, Nominal Rigidities, and Monetary Policy,” Review of Economic Dynamics, Vol. 10, 2007, pp. 256-275] finds that monetary policy response to share prices ...
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Asset Prices, Nominal Rigidities, and Monetary Policy: Negative Monetary Policy Responses to Asset Price Fluctuations
... Carlstrom and Fuerst [“Asset Prices, Nominal Rigidities, and Monetary Policy,” Review of Economic Dynamics, Vol. 10, 2007, pp. 256-275] find that a positive monetary policy response to share prices is a ...
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Asset Prices, Nominal Rigidities, and Monetary Policy: Role of Price Indexation
... prices, nominal rigidities, and mon- etary policy,” Review of Economic Dynamics 10, 256–275] find that mone- tary policy response to share prices is a source of equilibrium indeterminacy because an increase ...
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Endogenous Growth, Monetary Shocks and Nominal Rigidities
... of nominal volatility (see ...introduce nominal rigidities (see ...one-period nominal wage ...two rigidities play in affecting the relationship between nominal volatility and ...
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Market structure and business cycles: Do nominal rigidities influence the importance of real shocks?
... An additional criterion for assessing the relative importance of these real shocks is their ability to predict US business cycle recessions. The smoothed Kalman Filter iterations allow the construction of implied series ...
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Effects of Government Purchases in Open Economies: Empirical Evidence and Predictions of a Dynamic General Equilibrium Model With Nominal Rigidities
... Estimates of effects of changes in government purchases are provided, for the G7 countries, during the post-Bretton Woods era. Empirically, a country-specific increase in government purchases tends to raise domestic and ...
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Sticky Price versus Sticky Information Price: Empirical Evidence in the New Keynesian Setting
... By analyzing the monetary policy using Tunisian quarterly data, we consider two alternatives models with different nominal rigidities to compare inflation dynamics in the DSGE framework. Following Söderberg ...
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Welfare implications of country size in a monetary union
... This paper calculates di¤erences in welfare costs of nominal rigidities in large and small EMU countries. I use a two-country DSGE model characterized by optimizing agents, monopolistic wage and price ...
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Bayesian Analysis of DSGE Models with Regime Switching
... regime switching in monetary policy than in technology or nominal rigidities based on model comparison using marginal likelihoods of models. Also, I find that the long- run Taylor principle-type monetary ...
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Government spending shocks, wealth effects and distortionary taxes
... To the extent that nominal rigidities allow for short-run demand effects and, to the extent that the wealth effect on labour supply is small, my results suggest that debt-financed or lum[r] ...
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Price-setting behaviour in Switzerland: Evidence from CPI micro data
... With positive CPI inflation, the distribution of price changes provides a more informative indicator of nominal rigidities than the share of price decreases in total price changes. Figure 1 (panels a and b) ...
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Rigidities and adjustments of daily prices to costs : evidence from supermarket data
... studied nominal rigidities based on the microdata collected by the Colombian statistical agency (DANE) to construct the consumer and producer price indexes, ...
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How do nominal and real rigidities interact? A tale of the second best
... between nominal and real rigidities (Figure ...and nominal rigidities are roughly unchanged, while greater price stickiness is now al- ways welfare-enhancing for any given degree of real wage ...
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Micro level Rigidity vs Macro level Flexibility: Lessons from Finland
... Since downward wage rigidities mean that wage change distributions become asymmetric by shifting the negative nominal and real wage changes upward in the distribution, it means that the [r] ...
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Money and Nominal Bonds
... This paper studies an economy with trading frictions, ex post het- erogeneity and nominal bonds in a model ` a la Lagos and Wright [16]. It is shown that a strictly positive interest rate is a sufficient condition ...
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Gradability in the nominal domain
... INTRODUCTION 35 first class consists of adjectives which in their literal sense express size (e.g. big, great, huge, colossal, enormous etc.). The second class includes adjectives which in their basic use express purity, ...
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