Intertemporal substitution and the liquidity effect in a sticky price model
نویسندگان
چکیده
منابع مشابه
DEPARTMENT OF ECONOMICS WORKING PAPER SERIES Intertemporal Substitution and Sectoral Comovement in a Sticky Price Model
Strong procyclical fluctuations in the durable production are the most prominent feature of the empirical response to monetary shocks. This paper investigates the role of preferences in matching this feature of the data in a two-sector sticky price model with flexibly priced durables. The reaction of durables depends crucially on whether preferences are separable between labor and aggregate con...
متن کاملSectoral Price Facts in a Sticky-Price Model
We develop a multi-sector sticky-price DSGE model that can endogenously deliver differential responses of prices to aggregate and sectoral shocks. Input-output production linkages induce across-sector pricing complementarities that contribute to a slow response of prices to aggregate shocks. In turn, labor-market segmentation at the sectoral level induces within-sector pricing substitutability,...
متن کاملMonetary policy and economic fluctuations in a sticky-price model
This paper examines a simple monetary optimizing model with sticky-prices. Two types of monetary policy rules are considered: constant money growth rules and interest-rate feedback (Taylor-type) rules. In the case of constant money growth rules, we show the existence of limit cycles through the Hopf bifurcation theorem. On the other hand, in the case of the interest-rate feedback rules, we show...
متن کاملSectoral Price Facts in a Sticky - Price
We develop a multi-sector sticky-price DSGE model that can endogenously deliver differential responses of prices to aggregate and sectoral shocks. Input-output production linkages induce across-sector pricing complementarities that contribute to a slow response of prices to aggregate shocks. In turn, labor-market segmentation at the sectoral level induces within-sector pricing substitutability,...
متن کاملIntertemporal Substitution in Macroeconomics
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ژورنال
عنوان ژورنال: European Economic Review
سال: 2002
ISSN: 0014-2921
DOI: 10.1016/s0014-2921(01)00190-8