TY  - JOUR
AU  - Gali,Jordi
TI  - New Perspectives on Monetary Policy, Inflation, and the Business Cycle
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8767
PY  - 2002
Y2  - February 2002
UR  - http://www.nber.org/papers/w8767
L1  - http://www.nber.org/papers/w8767.pdf
N1  - Author contact info:
Jordi Gali
Centre de Recerca en Economia Internacional (CREI)
Ramon Trias Fargas 25
08005 Barcelona
SPAIN
Tel: 011-34-93-5422754
Fax: 011-34-93-5421860
E-Mail: jgali@crei.cat
AB  - 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 dimensions in which the recent literature provides a new perspective on the linkages among monetary policy, inflation, and the business cycle. It is argued that the adoption of an explicitly optimizing, general equilibrium framework has not been superfluous; on the contrary, it has yielded many insights which, by their nature, could hardly have been obtained with earlier non-optimizing models.
ER  -