Article ID Journal Published Year Pages File Type
5061408 Economics Letters 2009 4 Pages PDF
Abstract

We analytically examine output persistence from monetary shocks in a DSGE model with staggered prices or wages under a Taylor Rule. Surprisingly, while Taylor-style staggering never yields persistence, Calvo-style staggering of wages does generate persistence under decreasing returns to labour.

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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Output persistence from monetary shocks with staggered prices or wages under a Taylor Rule
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