TY  - JOUR
AU  - Christiano,Lawrence J.
AU  - Eichenbaum,Martin
AU  - Evans,Charles
TI  - Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8403
PY  - 2001
Y2  - July 2001
UR  - http://www.nber.org/papers/w8403
L1  - http://www.nber.org/papers/w8403.pdf
N1  - Author contact info:
Lawrence Christiano
Department of Economics
Northwestern University
2001 Sheridan Road
Evanston, IL 60208
Tel: 847/491-8231
Fax: 847/491-7001
E-Mail: l-christiano@northwestern.edu

Martin S. Eichenbaum
Department of Economics
Northwestern University
2003 Sheridan Road
Evanston, IL  60208
Tel: 847/491-8232
Fax: 847/491-7001
E-Mail: eich@northwestern.edu

Charles Evans
Federal Reserve Bank of Chicago
2nd floor
230 S. LaSalle Street
Chicago, IL 60604
Tel: 312-322-5001
E-Mail: charles.l.evans@chi.frb.org
AB  - We present a model embodying moderate amounts of nominal rigidities which accounts for the observed inertia in inflation and persistence in output.  The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy.  Of these features, the most important are staggered wage contracts of average duration three quarters, and variable capital utilization.
ER  -