How monetary policy can have permanent real effects with only temporary nominal rigidity

Scottish Journal of Political Economy

Volumn 48, Issue 5, 2001, Pages 532-546

  McDonald, Ian M ^a   Sibly, Hugh ^b  

^a UNIVERSITY OF MELBOURNE   (Australia)

^b UNIVERSITY OF TASMANIA   (Australia)

Author keywords

[No Author keywords available]

Indexed keywords

LABOR MARKET; MONETARY POLICY; THEORETICAL STUDY; WAGE DETERMINATION;

EID: 0012162676     PISSN: 00369292     EISSN: None     Source Type: Journal    
DOI: 10.1111/1467-9485.00213     Document Type: Article

References (22)

1. BHASKAR, V. (1990). Wage relativities and the natural rate of unemployment. Economic Journal, 100, pp. 60-6.
2. BUITER, W. H. (1980). The Macroeconomics of Dr Pangloss: a critical survey of the new classical macroeconomics. Economic Journal, 90, pp. 34-50.
3. CARRUTH, A. A. and OSWALD, A. J. (1987). On union preferences and labour market models: insiders and outsiders. Economic Journal, 97, pp. 431-45.
4. DIXON, H. (1988). Unions, oligopoly and the natural range of equilibria. Economic Journal, 98, pp. 1127-47.
5. DUNN, L. F. (1996). Loss aversion and adaptation in the labor market: empirical indifference functions and labor supply. Review of Economics and Statistics, 78, 3, August, pp. 441-50.
6. EICHBERGER, J. (1993). Game Theory for Fconomists. San Diego: Academic Press.
7. FEHR, E. and KIRCHSTEIGER, G. (1994). Insider power, wage discrimination and fairness. Economic Journal, 104, pp. 571-83.
8. FRIEDMAN, M. (1968). The role of monetary policy. American Economic Review, 58, 1, pp. 1-17.
9. HOLDEN, S. (1997), Wage bargaining, holdout and inflation. Oxford Economic Papers, 49, pp. 235-55.
10. KAHNEMAN, D., KNETSCH, J. and THALER, R. (1991), The endowment effect, loss aversion, and status quo bias: anomalies. Journal of Economic Perspectives, 5, 1. Winter, pp. 193-206.
11. LINDBECK, A. SNOWER, D. J. (1988). The Insider-Outsider Theory of Employment and Unemployment, Cambridge, Mass., MIT Press.
12. MCDONALD, I. M. (1987). Customer markets, trade unions and stagflation. Economica, 54, May, pp. 139-53.
13. MCDONALD, I. M. and SIBLY, H. (1998). Loss aversion and the non-neutrality of money. Research paper number 590, Department of Economics, University of Melbourne.
14. MCDONALD, I. M. and SOLOW, R. M. (1981). Wage bargaining and employment. American Economic Review, 71, 4, pp. 896-908.
15. MYAGKOV, M. and PLOTT, C. R. (1997). Exchange economics and loss exposure: experiments exploring prospect theory and competitive equilibria in market environments. American Economic Review, 87, 5, pp. 801-28.
16. NEGISHI, T. (1979). Microeconomic Foundations of Keynesian Macroeconomics. Amsterdam, North Holland.
17. NICKELL, S. (1982). A bargaining model of the Phillips Curve. Centre of Labour Economics, Discussion Paper No. 130. London School of Economics.
18. PARKIN, M. (1986). The output-inflation trade-off when prices are costly to change. Journal of Political Economy, 94, pp. 200-24.
19. SHAFIR, E., DIAMOND, P. and TVERSKY, A. (1997). Money illusion. Quarterly Journal of Economics, CXII, pp. 341-74.
20. SHEA, J. (1995). Union contracts and the life-cycle/permanent-income hypothesis. American Economic Review, 85, 1. March, pp. 186-200.
21. THALER, R. H. (2000). From homo econominus to homo sapiens. Journal of Economic Perspectives. 14, 1, pp. 133-41.
22. THALER, R. H., TVERSKY, A., KAHNEMAN, D. and SCHWARTZ, A. (1997). The effect of myopia and loss aversion on risk taking: an experimental test. Quarterly Journal of Economics, pp. 647-61.