In an optimizing-agent model where both wages and prices are set in staggered Calvo contracts, monetary policy cannot reach the allocation that would prevail under fully flexible wages and prices, …
PublishedClassicJournal of Money, Credit and BankingPublished Jan 2007
The standard New Keynesian model implies that stabilising inflation also stabilises the welfare-relevant output gap -- a property the authors name the "divine coincidence" and trace to the absence of …
This 2014 *Journal of Political Economy* paper (circulated as Federal Reserve Bank of Minneapolis Staff Report 476, December 2012; the Minneapolis Fed's own hosting of this PDF is currently …
Online FirstReview of Economic StudiesOnline 18 Jun 2026
Seven U.S. states permanently cut unemployment insurance (UI) benefits by 30–64 percent between 2011 and 2014, providing the study's quasi-experimental variation.
PublishedClassicJournal of Economic PerspectivesPublished Feb 1997
Blanchard and Katz assess three decades of research on the determinants of the natural rate of unemployment and reach two main conclusions: that there has been considerable theoretical progress, …