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Nominal rigidities and the dynamic effects of a monetary shock

Gerke, Rafael :
Nominal rigidities and the dynamic effects of a monetary shock.
In: Darmstadt Discussion Papers in Economics, 107. Darmstadt
[Report], (2001)

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Item Type: Report
Title: Nominal rigidities and the dynamic effects of a monetary shock
Language: English
Abstract:

Two dynamic sticky price models with monopolistic competition in the goods market are presented. In the first model, each intermediate goods producer faces quadratic costs of adjusting its nominal price as introduced by Rotemberg (1982); the second model incorporates staggered price setting as proposed by Taylor (1980) and recently discussed by Chari/Kehoe/McGrattan (2000). Using the approximation method and the toolkit of Uhlig (1999) these models are used to derive theoretical impulse response functions. One aim is to check whether these two different forms of nominal price rigidities imply quantitatively and qualitatively different impulse response functions. Interestingly, both models do not seem to imply as much persistence as empirical impulse response functions typically indicate. However, qualitative differences do exist.

Series Name: Darmstadt Discussion Papers in Economics
Volume: 107
Place of Publication: Darmstadt
Classification DDC: 300 Sozialwissenschaften > 330 Wirtschaft
Divisions: 01 Law and Economics
01 Law and Economics > Volkswirtschaftliche Fachgebiete
Date Deposited: 07 Nov 2009 09:05
Last Modified: 01 Feb 2016 09:32
URN: urn:nbn:de:tuda-tuprints-48199
URI: http://tuprints.ulb.tu-darmstadt.de/id/eprint/4819
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