Optimising Agents, Staggered Wages and Persistence in the Real Effects of Money Shocks
Bibliographic Data
| ID | 9720108 |
|---|---|
| Authors | Guido Ascari (0000-0002-5037-1964, University of Pavia, corresponding author) |
| Year | 2000 |
| Volume | 110 |
| Issue | 465 |
| Pages | 664-686 |
| Publication date | 2000-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/1468-0297.00560 |
| OpenAlex | W2079562296 |
| Language | EN |
| Citations received | 3 |
| References cited | 1 |
In this paper we incorporate Taylor's (1979) staggered wage setting into an optimising dynamic general equilibrium framework to study whether staggered wages could induce a high degree of persistence in the real effects of money shocks. We conclude that high persistence is an unlikely outcome. Sensible values of the microeconomic parameters and/or a moderate rate of underlying inflation imply a low degree of persistence. Furthermore, once explicit microfoundations are taken into account, we show that: (i) the model is highly non‐linear; (ii) the inertia of the system is inversely related to the level of average inflation
Econometrics · Economics · Inertia · Inflation (cosmology · Keynesian economics · Labour economics · Microfoundations · Monetary economics · Monetary policy · Persistence (discontinuity · Physics · Wage · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,13 |
| Citation span | 2003 - 2012 (10) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 3 |