This chapter reviews the role of temporary price and wage rigidities in explaining of the
dynamic relationship between money, real output, and inflation. The key properties to be …

I estimate a decomposition of productivity and hours into technology and non-technology
components. Two results stand out:(a) the estimated conditional correlations of hours and …

This book retraces the history of macroeconomics from Keynes's General Theory to the
present. Central to it is the contrast between a Keynesian era and a Lucasian-or dynamic …

This paper investigates the ability of nominal price rigidity to explain the co-movement of
inflation with the cyclical component of output observed in the post-war US data. A dynamic …

Are the recessionary consequences of oil-price shocks due to oil-price shocks themselves or
to the monetary policy that responds to them? We investigate this question in a calibrated …

The present paper provides an overview of recent developments in the analysis of monetary
policy in the presence of nominal rigidities. The paper emphasizes the existence of several …

I develop a New Keynesian model in which a type of government multiplier doubles when
unemployment rises from 5 percent to 8 percent. This multiplier indicates the additional …

We analytically derive the cyclical effects of fiscal policy shocks in a New Neoclassical
Synthesis model. Price stickiness has the consequence that a rise in government demand …

A dynamic stochastic general-equilibrium (DSGE) model with real and nominal, both price
and wage, rigidities succeeds in capturing some key nominal features of US business …

What explains the correlations between nominal and real variables in the postwar US data?
Are these correlations indicative of significant nominal rigidity? Or do they simply reflect the …