The real effects of monetary shocks in sticky price models: A sufficient statistic approach

We prove that the ratio of kurtosis to the frequency of price changes is a sufficient statistic for the real effects of monetary shocks, measured by the cumulated output response following the shock. The sufficient statistic result holds in a large class of models which includes Taylor (1980); Calvo...

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Bibliographic Details
Main Authors: Alvarez, F., Le Bihan, Herve, Lippi, F.
Format: Journal Article
Published: 2016
Online Access:http://hdl.handle.net/20.500.11937/56346