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Output persistence from monetary shocks with staggered prices or wages under a Taylor Rule

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.
Year of publication:
2009
Authors: Daros, Sebastiano ; Rankin, Neil
Published in:
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 105.2009, 2, p. 148-151
Publisher: Elsevier
Keywords: Output persistence Staggered prices/wages Taylor Rule
Type of publication: Article
Source:
Persistent link: https://www.econbiz.de/10008474033
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