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Nominal rigidities and the dynamic effects of a monetary shock

Gerke, Rafael (2009)
Nominal rigidities and the dynamic effects of a monetary shock.
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Item Type: Report
Type of entry: Primary publication
Title: Nominal rigidities and the dynamic effects of a monetary shock
Language: English
Date: 7 November 2009
Place of Publication: Darmstadt
Series: Darmstadt Discussion Papers in Economics
Series Volume: 107

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.

URN: urn:nbn:de:tuda-tuprints-48199
Additional Information:

Erstellt August 2001

Classification DDC: 300 Social sciences > 330 Economics
Divisions: 01 Department of Law and Economics
01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete
Date Deposited: 07 Nov 2009 09:05
Last Modified: 25 Oct 2023 07:01
URI: https://tuprints.ulb.tu-darmstadt.de/id/eprint/4819
PPN: 378486152
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