Lectures 5-6 "New Keynesian" Model of Monetary Policy Analysis - Discretion

Question 1

why does montary policy matter for the real economy?

Answer 1

conventional explanation is that prices and wages are stickys

Question 2

how sticky are prices?

Answer 2

NAKAMURA and Steinson (2008: median duration of a price change is 11 months
huge heterogeneity between sectors (0.5 to 27 months
0

Question 3

how sticky are wages?

Answer 3

Question 4

why does clarida, Gali and gertler 1999 denote the models as new keynisan
??

Answer 4

Question 5

what is the simple baseline framework from clarid gali and gertler 1999 for the household?

Answer 5

Question 6

what is the simple baseline framework from clarid gali and gertler 1999 for the firm?

Answer 6

Question 7

what is the simple baseline framework from clarid gali and gertler 1999 for the central bank?

Answer 7

they implement monetary policy

Question 8

what is the euler equation for th households maximisation problem in the fully simplified form?

Answer 8