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2 edition of Long-term contracts, rational expectations, and the optimal money supply rule. found in the catalog.

Long-term contracts, rational expectations, and the optimal money supply rule.

Stanley Fischer

Long-term contracts, rational expectations, and the optimal money supply rule.

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Published .
Written in English


Edition Notes

Taken from Journal of political economy, vol.85, no.1, 1977, pp.191-205.

SeriesJournal of political economy -- v.85, no.1
ID Numbers
Open LibraryOL21145953M

Hayek on ‘neutral money’, long-term contracts, rigid prices, the structure of production & ideal monetary policy Posted on October 8, by Greg Ransom From F. A. Hayek’s Prices and Production: “In order to preserve, in a money economy, the tendencies towards a stage of equilibrium which are described by general economic theory, it. Fischer, Stanley "Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule," JPE , reprinted in LS, Taylor, John "Staggered Wage Setting in a Macro Model," AER, May , Kydland, Finn and Edward Prescott "Rules Rather than Discretion: The Inconsistency of Optimal Plans," JPE , reprinted in LS.


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Long-term contracts, rational expectations, and the optimal money supply rule. by Stanley Fischer Download PDF EPUB FB2

Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule Stanley Fischer Massachusetts Institute of Technology The paper is concerned with the role of monetary policy and argues that activist monetary policy can affect the behavior of real output, rational expectations notwithstanding.

A rational expectations model with over. A rational expectations model with overlapping labor contracts is constructed, with each labor contract being made for two periods. These contracts inject an element of short-run wage stickiness into the model.

Because the money stock is changed by the monetary authority more frequently than labor contracts are renegotiated, and, given the Cited by: Long-term contracts, rational expectations, and the optimal money supply rule.

@article{FischerLongTermCR, title={Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule}, author={S. Fischer}, journal={Journal of Political Economy}, year={}, volume={85}, pages={ - } } S.

Fischer Published Economics Journal of. Fischer, Stanley, "Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press.

An illustration of an open book. Books. An illustration of two cells of a film strip. Video An illustration of Long-term contracts audio speaker. rational expectations and the optimal money supply rule Item Preview remove-circle Long-term contracts, rational expectations and the optimal money supply rule by Fischer, Stanley.

Publication date Download PDF: Sorry, we are unable to provide the full text but you may find it at the following location(s): (external link). >rkingpar department ofeconomics LONG-TERMCONTRACTS,RATIONALEXPECTATIONS ANDTHEOPTIMALMONEYSUPPLYRULE StanleyFischer Number October massachusetts ^instituteof technology 50memorialdrive Cambridge,mass The rational expectations revolution in the s thoroughly banned the study of money illusion from economists’ research agendas.

Rational individuals do not exhibit illusions and because, Long-term contracts assumption, people behave rationally, there is nothing to study.

‘Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule. The New Classical School works with rational expectations and full ().

“Long-term Contracts, Rational Expectations and the Optimal Money Supply Rule,” JPE, Vol. 85 Book. Fischer (), ‘Long-term Contracts, Rational Expectations and the Optimal Money Supply Rule’ G.

Calvo (), ‘Staggered Prices in a Utility-maximizing Framework’ G. Akerlof and J. Yellen (), ‘A Near-rational Model of the Business Cycle with Wage and Price Inertia’. Real Effects of Unanticipated Inflation Through Existing Nominal Contracts Existing contracts for goods or services fixed in money te~s or other­ wise sticky Existing debt contracts fixed in nominal terms Redistribution between buyer and seller if quantity of services fixed by contract Effects on quantity of services provided.

Journal of Economic Dynamics and Control 3 () North-Holland LONG-TERM CONTRACTS, IMPERFECT INFORMATION, AND MONETARY POLICY Mark L. GERTLER* University of Wisconsin, Madison, WIUSA Received June This paper considers the implications of imperfect information for monetary policy in a model with rational expectations and long-term contracts.

Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule. Article. Feb ; rational expectations notwithstanding. A rational expectations model with overlapping labor. My bibliography Save this book chapter. Staggered price and wage setting in macroeconomics In: "Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol.

85(1). 1. Introduction. The pioneering work of Fischer () and Taylor () has shown that staggered contracts can restore the ability of systematic monetary policy to affect the path of output rational expectations notwithstanding.

In the Fischer model the effects of disturbances expire when agents have adjusted to these disturbances. Rational expectations. Some economists, such as John F. Muth “Rational Expectations and the Theory of Price Movements” () and Robert Lucas, e.g.

“Expectations and the Neutrality of Money () pdf challenge this view of adaptive expectations. They argue that people can learn from past mistakes.

"Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule. Thomas J. Sargent and Short-Term Expectation Formation Versus Long-Term Equilibrium Conditions: The Danish Housing Market, Econometrics 5. You have printed the following article: Methods and Problems in Business Cycle Theory Robert E.

Lucas, Jr. Journal of Money, Credit and Banking, Vol. 12, No. 4, Part 2: Rational Expectations. (iv) Wage Rigidities and Rational Expectations Models (i) Staggered Wage Contracts (Reference: Chapter 9, Section:Monetary Economics: Theory and Policy, by Bennett T.

McCallum.) Journal Article(s): Wage Stickiness (a) Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule (Stanley Fischer). Long-term contracts, rational expectations, and the optimal money supply rule.

Journal of Political Econ – ‘Rational’ expectations, the optimal monetary instrument, and the optimal money supply rule. Journal of Political Econ – CrossRef Google Scholar. Phillips curve and expectations. Inflation expectations \[E(\pi_t | \theta_{t-1}) \equiv \pi_t^E\] Expected inflation is based on past information.

As the agents have all the information up to \(t_1\), this means that only random shocks can bring a surprise to Phillips curve will depend on the way that inflation expectations are modelled. Robert J. Barro, \Rational Expectations and the Role of Monetary Policy," Jour-nal of Monetary Economics (2), Stanley Fischer, \Long-term Contracts, Rational Expectations and the Optimal Money Supply Rule," Journal of Political Economy 85(1), Thomas Sargent and Neil Wallace, \Rational Expectations, the Optimal Mone.

Alternative monetary policies are analyzed in an ad hoc macroeconomic model in which the public's expectations about prices are rational.

The ad hoc model is one in which there is long-run neutrality, since it incorporates the aggregate supply schedule proposed by Lucas. Following Poole, the paper studies whether pegging the interest rate or pegging the money supply period by period minimizes.

The first wave of New Keynesian economics developed in the late s. The first model of Sticky information was developed by Stanley Fischer in his article, Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule.

He adopted a "staggered" or "overlapping" contract model. Historical importance. The Taylor contract came as a response to results of new classical macroeconomics, in particular the policy-ineffectiveness proposition proposed in by Thomas J.

Sargent and Neil Wallace based upon the theory of rational expectations, which posits that monetary policy cannot systematically manage the levels of output and employment in the economy and that.

Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule. Stanley Fischer. Journal of Political Economy,vol. 85, issue 1, Date: References: Add references at CitEc Citations: View citations in EconPapers () Track citations by. Steven M. Sheffrin (): Rational Expectations Articles.

Fischer, Stanley (). Long term contracts, rational expectations, and the optimal money supply rule. Journal of Political Economy Grossman and Stiglitz (): On the impossibility of informationally efficient markets. This book belongs on the shelf of anyone interested in modern macroeconomics and its history.' Long-term contracts, rational expectations, and the optimal money supply rule.

Journal of Political Economy – Fischer, S. Menu costs and the neutrality of money / Andrew S. Caplin and Daniel F. Spulber. The rigidity of prices / Dennis W. Carlton. The new Keynesian economics and the output-inflation trade-off / Laurence Ball, N.

Gregory Mankiw, and David Romer. Long-term contracts, rational expectations, and the optimal money supply rule / Stanley Fischer.

13 “Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule.” (pp. ) Stanley Fischer. "Long-term Contracts, Rational Expectations, and the Optimal Money Supply Rule. “Macroeconomics and the Theory of Rational Behavior.” Kydland, Finn, and Edward C.

Prescott, “Rules Rather Than Discretion: The Inconsistency of Optimal Plans. Fisher, S.() Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule, Journal of Political Economy, vol, no.1 Friedman, M. (), The Role of Monetary Policy, American Economic Review, No.1 vol.

LVIII March Freeman R (19) What Does Modern Growth Analysis Say About Government Policy Towards Growth. unrelated to the formation of expectations is that on nominal contracts.

See, for example, Stanley Fisher, "Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule," Journal of Political Economy, vol.

85 (Febru-ary ), pp.and John B. Taylor, "Aggregate Dynamics and Staggered Contracts," Journal of Political. His article in the Journal of Political Economy, “Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule,” provided the framework that still dominates practical macroeconomic analysis.

It was pioneering work in integrating rational expectations into a model that took account of price and wage frictions. These models are implicit in the recent rational expectations literature which includes Lucas (), Fischer (), Phelps and Taylor (), Poole () and Sargent and Wallace ().

«Long-term Contracts, Rational Expectations, and the Optimal Money Supply Rule». Fischer, S. "Anticipations and the Non-Neutrality of Money." Journal of Political Econ no. 2 (April) Rational Expectations and Economic Policy.

Chicago: University of Chicago Press "Long-term Contracts, Rational Expectations, and the Optimal Money Supply Rule." Journal of Political Econ no. Fischer S. "Long-term Contracts, Rational Expectations, and the Optimal Money Supply Rule," JPE, Taylor J. "Aggregate dynamics and staggered contracts," JPE, J.

of Economic Perspectives, WinterArticles On New-Keynesian Economics Akerlof, George A., and Janet L. Yellen. "A Near-Rational Model of the Business Cycle, with.

Fair, Ray C & Taylor, John B. “Solution and Maximum Likelihood Estimation of Dynamic Nonlinear Rational Expectations Models,” Econometrica, 51(4), Julypp. Fischer, Stanley.

“Long-term Contracts, Rational Expectations, and the Optimal Money Supply Rule.” Journal of Political Economy, February85(1), pp. – Chow, G.C. () “Optimal Stochastic Control of Linear Economic Systems,” Journal of Money, Credit and Banking, 2: 29 l Fischer, S.

(), “Long-term Contracts, Rational Expectations, and the Optimal Money Supply Rule,” Journal of Political Economy.

9. Fischer, Stanley, "Long-term Contracts, Rational Expectations, and the Optimal Money Supply Rule." Journal of Political Economy, FebruaryFrydman, Roman, "Sluggish Price Adjustments and the Effectiveness of Monetary Policy Under Rational Expectations: A Comment." Journal of Money, Credit, and Banking, February  "'Rational' Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule," Journal of Political Economy, vol.

83 (April), pp. Söderstrom, Ulf (). "Monetary Policy with Uncertain Parameters," Scandinavian Journal of Economics. Rational Expectations and Econometric Practice was first published in Minnesota Archive Editions uses digital technology to make long-unavailable books once again accessible, and are published unaltered from the original University of Minnesota Press editions.