1
178
V. CHARI, P. KEHOE, AND E. MCGRATTAN
MN 55480, U.S.A.; and National Bureau of Economic Research, Cambridge, MA
0
2138, U.S.A.; pkehoe@res.mpls.frb.fed.us,
and
Research Department, Federal Reser¨e Bank of Minneapolis, Minneapolis, MN
5480, U.S.A.; erm@ellen.mpls.frb.fed.us
5
Manuscript recei¨ed January, 1997; final re¨ision recei¨ed July, 1999.
REFERENCES
BALL, LAURENCE, AND DAVID ROMER Ž1989.: ‘‘Are Prices Too Sticky?’’ Quarterly Journal of
Economics, 104, 507᎐524.
ᎏᎏᎏ Ž1990.: ‘‘Real Rigidities and the Non-Neutrality of Money,’’ Re¨iew of Economic Studies, 57,
1
83᎐203.
BASU, SUSANTO Ž1996.: ‘‘Procyclical Productivity: Increasing Returns or Cyclical Utilization?’’
Quarterly Journal of Economics, 111, 719᎐751.
BASU, SUSANTO, AND JOHN G. FERNALD Ž1994.: ‘‘Constant Returns and Small Markups in U.S.
Manufacturing,’’ International Finance Discussion Paper 483, Board of Governors of the Federal
Reserve System.
ᎏᎏᎏ Ž1995.: ‘‘Are Apparent Productive Spillovers a Figment of Specification Error?’’ Journal of
Monetary Economics, 36, 165᎐188.
BASU, SUSANTO, AND MILES S. KIMBALL Ž1997.: ‘‘Cyclical Productivity With Unobserved Input
Variation,’’ Working Paper 5915, National Bureau of Economic Research.
BLANCHARD, OLIVIER JEAN Ž1990.: ‘‘Why Does Money Affect Output? A Survey,’’ in Handbook of
Monetary Economics, Vol. 2, ed. by Benjamin M. Friedman and Frank H. Hahn. Amsterdam:
North-Holland, 779᎐835.
ᎏᎏᎏ Ž1991.: ‘‘Price Asynchronization and Price-Level Inertia,’’ in New Keynesian Economics, Vol.
1
, Imperfect Competition and Sticky Prices, ed. by N. Gregory Mankiw and David Romer.
Cambridge, Mass.: MIT Press, 243᎐265.
BLANCHARD, OLIVIER JEAN, AND STANLEY FISCHER Ž1989.: Lectures on Macroeconomics. Cambridge,
Mass.: MIT Press.
BLANCHARD, OLIVIER JEAN, AND NOBUHIRO KIYOTAKI Ž1987.: ‘‘Monopolistic Competition and the
Effects of Aggregate Demand,’’ American Economic Re¨iew, 77, 647᎐666.
CAPLIN, ANDREW S., AND JOHN V. LEAHY Ž1991.: ‘‘State-Dependent Pricing and the Dynamics of
Money and Output,’’ Quarterly Journal of Economics, 106, 683᎐708.
CAPLIN, ANDREW S., AND DANIEL F. SPULBER Ž1987.: ‘‘Menu Costs and the Neutrality of Money,’’
Quarterly Journal of Economics, 102, 703᎐725.
CHARI, V. V., PATRICK J. KEHOE, AND ELLEN R. MCGRATTAN Ž1998.: ‘‘Sticky Price Models of the
Business Cycle: Can the Contract Multiplier Solve the Persistence Problem?’’ Research Depart-
ment Staff Report 217, Federal Reserve Bank of Minneapolis.
CHO, JANG OK, AND THOMAS F. COOLEY Ž1995.: ‘‘The Business Cycle With Nominal Contracts,’’
Economic Theory, 6, 13᎐33.
CHRISTIANO, LAWRENCE J. Ž1988.: ‘‘Why Does Inventory Investment Fluctuate So Much?’’ Journal of
Monetary Economics, 21, 247᎐280.
COOLEY, THOMAS F., AND EDWARD C. PRESCOTT Ž1995.: ‘‘Economic Growth and Business Cycles,’’ in
Frontiers of Business Cycle Research, ed. by Thomas F. Cooley. Princeton, N.J.: Princeton
University Press, 1᎐38.
DIXIT, AVINASH K., AND JOSEPH E. STIGLITZ Ž1977.: ‘‘Monopolistic Competition and Optimum
Product Diversity,’’ American Economic Re¨iew, 67, 298᎐308.
FISCHER, STANLEY Ž1977.: ‘‘Long-Term Contracts, Rational Expectations, and the Optimal Money
Supply Rule,’’ Journal of Political Economy, 85, 191᎐205.
KIMBALL, MILES S. Ž1995.: ‘‘The Quantitative Analytics of the Basic Neomonetarist Model,’’ Journal
of Money, Credit, and Banking, 27, 1241᎐1277.