Sticky-price models and the natural rate hypothesis

Journal of Monetary Economics

Volumn 52, Issue 5, 2005, Pages 1025-1053

  Andrés, Javier ^a,b   López Salido, J David ^b,c   Nelson, Edward ^c,d  

^a UNIVERSITY OF VALENCIA   (Spain)

^b Bank of Spain ^*  (Spain)

^c CEPR   (United Kingdom)

^d FEDERAL RESERVE BANK OF ST LOUIS   (United States)

Author keywords

Natural rate hypothesis; Output gap; Price stickiness

Indexed keywords

EID: 27144449588     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jmoneco.2005.07.006     Document Type: Article

References (44)

1. Altig, D., Christiano, L.J., Eichenbaum, M., Linde, J., 2005. Firm-specific capital, nominal rigidities and the business cycle. NBER Working Paper No. 11034.
2. J. Amato T. Laubach Implications of habit formation for optimal monetary policy Journal of Monetary Economics 51 2004 305-325
3. Anderson, R.G., Rasche, R.H., 2000. The domestic adjusted monetary base. Federal Reserve Bank of St Louis Working Paper 2000-02A.
4. Andrés, J., López-Salido, J.D., Nelson, E., 2004. Money and the natural rate of interest: Estimates for the U.K., the U.S., and the Euro Area. CEPR Discussion Paper No. 4337.
5. G.A. Calvo Staggered prices in a utility-maximizing framework Journal of Monetary Economics 12 1983 383-398
6. V.V. Chari P.J. Kehoe E.R. McGrattan Sticky price models of the business cycle: Can the contract multiplier solve the persistence problem? Econometrica 68 2000 1151-1179
7. L.J. Christiano C.J. Gust Comment In: J.B. Taylor (Ed.) Monetary Policy Rules 1999 University of Chicago Press Chicago pp. 299-316
8. L.J. Christiano M. Eichenbaum C.L. Evans Nominal rigidities and the dynamic effects of a shock to monetary policy Journal of Political Economy 113 2005 1-45
9. Edge, R.M., 2003. A utility-based welfare criterion in a model with endogenous capital accumulation. Finance and Economics Discussion Series 2003-66.
10. Eichenbaum, M., Fisher, J.D.M., 2004. Evaluating the Calvo model of sticky prices. Manuscript, Northwestern University.
11. C.J. Erceg D.W. Henderson A.T. Levin Optimal monetary policy with staggered wage and price contracts Journal of Monetary Economics 46 2000 281-313
12. Evans, C.L., Marshall, D., 2001. Economic determinants of the nominal treasury yield curve. Manuscript, Federal Reserve Bank of Chicago.
13. S. Fischer Long-term contracts, rational expectations and the optimal money supply rule Journal of Political Economy 85 1977 191-206
14. M. Friedman The role of monetary policy American Economic Review 58 1968 1-17
15. J. Galí M. Gertler J.D. López-Salido European inflation dynamics European Economic Review 45 2001 1237-1270
16. J. Galí J.D. López-Salido J. Vallés Technology shocks and monetary policy: Evaluating the Fed's performance Journal of Monetary Economics 50 2003 723-743
17. Giammarioli, N., Valla, N., 2003. The natural real rate of interest in the Euro Area. ECB Working Paper No. 233.
18. M.P. Giannoni Michael Woodford Optimal inflation-targeting rules In: B. Bernanke M. Woodford (Eds.) The Inflation-Targeting Debate 2005 University of Chicago Press Chicago pp. 93-162
19. J.D. Hamilton Time Series Analysis 1994 Princeton University Press Princeton, NJ
20. P.N. Ireland Endogenous money or sticky prices? Journal of Monetary Economics 50 2003 1623-1648
21. P.N. Ireland Money's role in the monetary business cycle Journal of Money, Credit, and Banking 36 2004 969-984
22. Keen, B.D., 2004. Sticky price and sticky information price-setting models: What is the difference?. Manuscript, Texas Tech University.
23. Khan, H., Zhu, Z., 2002. Estimates of the sticky-information Phillips curve for the United States, Canada, and the United Kingdom. Bank of Canada Working Paper 2002-19.
24. R.G. King M.W. Watson The solution of singular linear difference systems under rational expectations International Economic Review 39 1998 1015-1026
25. Koenig, E.F., 1997. Aggregate price adjustment: The Fischerian alternative. Working Paper, Federal Reserve Bank of Dallas.
26. Lucas, R.E., Jr. 1988. Money demand in the United States: A quantitative review. Carnegie-Rochester Conference Series on Public Policy, vol. 29, pp. 137-167.
27. N.G. Mankiw R. Reis Sticky information versus sticky prices: A proposal to replace the new Keynesian Phillips curve Quarterly Journal of Economics 117 2002 1295-1328
28. McCallum, B.T., 1982. Macroeconomics after a decade of rational expectations: Some critical issues. Federal Reserve Bank of Richmond Economic Review, vol. 68, pp. 3-12.
29. McCallum, B.T., 1994. A semi-classical model of price level adjustment. Carnegie-Rochester Conference Series on Public Policy, vol. 41, pp. 251-284.
30. McCallum, B.T., 1998. Stickiness: A comment. Carnegie-Rochester Conference Series on Public Policy, vol. 48, pp. 357-363.
31. B.T. McCallum Should monetary policy respond strongly to output gaps? American Economic Review (Papers and Proceedings) 91 2001 258-262
32. B.T. McCallum E. Nelson Performance of operational policy rules in an estimated semi-classical structural model In: J.B. Taylor (Ed.) Monetary Policy Rules 1999 University of Chicago Press Chicago pp. 15-45
33. K.S. Neiss E. Nelson The real interest-rate gap as an inflation indicator Macroeconomic Dynamics 7 2003 239-262
34. J.J. Rotemberg M. Woodford Interest rate rules in an estimated sticky-price model In: J.B. Taylor (Ed.) Monetary Policy Rules 1999 University of Chicago Press Chicago pp. 57-119
35. T.J. Sargent A note on the accelerationist controversy Journal of Money, Credit, and Banking 3 1971 721-725
36. F. Smets R. Wouters Monetary policy in an estimated stochastic dynamic general equilibrium model of the Euro Area Journal of the European Economic Association 1 2003 1123-1175
37. Smets, F., Wouters, R., 2004. Comparing shocks and frictions in US and Euro Area business cycles. ECB Working Paper No. 391.
38. L.E.O. Svensson What is wrong with Taylor rules? Using judgment in monetary policy through targeting rules Journal of Economic Literature 41 2003 426-477
39. J.B. Taylor Aggregate dynamics and staggered contracts Journal of Political Economy 88 1980 1-24
40. Trabandt, M., 2003. Sticky information vs. sticky prices: A horse race in a DSGE framework. Manuscript, Hamboldt University.
41. C.E. Walsh Monetary Theory and Policy second ed 2003 MIT Press Cambridge, MA
42. M. Woodford Imperfect common knowledge and the effects of monetary policy In: P. Aghion R. Frydman J. Stiglitz M. Woodford (Eds.) Knowledge, Information and Expectations in Modern Macroeconomics: In Honor of Edmund S. Phelps 2002 Princeton University Press Princeton, NJ pp. 25-58
43. M. Woodford Interest and Prices: Foundations of a Theory of Monetary Policy 2003 Princeton University Press Princeton, NJ
44. T. Yun Nominal price rigidity, money supply endogeneity, and business cycles Journal of Monetary Economics 37 1996 345-370