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Endogenous Growth, Monetary Shocks and Nominal Rigidities

13 Pages Posted: 9 Mar 2011  

Barbara Annicchiarico

University of Rome, Tor Vergata - Department of Economics and Finance

Alessandra Pelloni

University of Rome II, Department of Economics

Lorenza Rossi

University of Rome, Tor Vergata - Faculty of Economics; National Institute of Statistics (Istat)

Date Written: February 1, 2011

Abstract

We introduce endogenous growth in an otherwise standard NK model with staggered prices and wages. Some results follow: (i) monetary volatility negatively affects long-run growth; (ii) the relation between nominal volatility and growth depends on the persistence of the nominal shocks and on the Taylor rule considered; (iii) a Taylor rule with smoothing increases the negative effect of nominal volatility on mean growth.

Keywords: Growth, volatility, business cycle, monetary policy

JEL Classification: E32, E52, 042

Suggested Citation

Annicchiarico, Barbara and Pelloni, Alessandra and Rossi, Lorenza, Endogenous Growth, Monetary Shocks and Nominal Rigidities (February 1, 2011). CEIS Tor Vergata Research Paper Series, Vol. 9, No. 3, p. 187, February 2011. Available at SSRN: https://ssrn.com/abstract=1781035 or http://dx.doi.org/10.2139/ssrn.1781035

Barbara Annicchiarico (Contact Author)

University of Rome, Tor Vergata - Department of Economics and Finance ( email )

Rome, I-00133
Italy

Alessandra Pelloni

University of Rome II, Department of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy
390672595908 (Phone)

Lorenza Rossi

University of Rome, Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy

National Institute of Statistics (Istat)

Via Cesare Balbo 16
00184 Rome, 0185
Italy

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