Aggregate Dynamics and Staggered Contracts

  title={Aggregate Dynamics and Staggered Contracts},
  author={John B. Taylor},
  journal={Journal of Political Economy},
  pages={1 - 23}
  • John B. Taylor
  • Published 1 February 1980
  • Economics
  • Journal of Political Economy
Staggered wage contracts as short as 1 year are shown to be capable of generating the type of unemployment persistence which has been observed during postwar business cycles in the United States. A contract multiplier causes business cycles to persist beyond the length of the longest contract, and a diffusion of shocks across contracts causes the persistence to increase for several periods before diminishing. A persistence of inflation is also generated by the contracts. This persistence is… 
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  • Economics
    Journal of Political Economy
  • 1977
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ZusammenfassungInflationsbekÄmpfung ohne Rezession. — In dieser Arbeit wird das Theorem begründet, da\ ein einziger Pfad der Kontrollvariablen für die Gesamtnachfrage — hier der Geldversorgung —