Logo
Munich Personal RePEc Archive

The State-Dependent Effects of Monetary Policy: Calvo versus Rotemberg

Kamalyan, Hayk (2021): The State-Dependent Effects of Monetary Policy: Calvo versus Rotemberg.

[img]
Preview
PDF
MPRA_paper_107490.pdf

Download (102kB) | Preview

Abstract

This paper evaluates state-dependence in monetary policy transmission mechanism under Calvo and Rotemberg price adjustment schemes. Although the two models are equivalent to first order, they produce very different results once considered at a higher order. In particular, the Rotemberg model produces more state-dependence compared to the Calvo model. The result is reversed once the macroeconomic wedges are eliminated from the models.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.