Browsing Arbeidsnotater / Working Papers by Subject "real rigidities"
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Fiscal Shocks and Real Rigidities
(Working Papers;10/2008, Working paper, 2008)In this paper we show that empirically plausible results on the effects of fiscal shocks in Galí, López-Salido and Vallés (2007) rely on a high degree of price stickiness and a large percentage of financially constrained ... -
Rule-Of-Thumb Consumers, Productivity and Hours
(Working Papers;5/2007, Working paper, 2007)In this paper we study the transmission mechanisms of productivity shocks in a model with rule-of-thumb consumers. In the literature, this financial friction has been studied only with reference to fiscal shocks. We show ... -
The Taylor Principle in a Medium-Scale Macroeconomic Model
(Working Papers;9/2010, Working paper, 2010)The Taylor Principle is often used to explain macroeconomic stability (see, e.g., Clarida et al. 2000). The reason is that this simple principle guarantees determinacy, i.e., local uniqueness of rational expectations ...