nominal rigidity, also known as price-stickiness or wage-stickiness, is a situation in which a nominal price is resistant to change. Complete nominal...

which arises from over-dependence on prior experiences Real rigidity, and nominal rigidity, the resistance of prices and wages to market changes in macroeconomics...

original price level. When the nominal price level remains constant despite market change is said that there is nominal rigidity or price stickiness in the...

showed in 1990 that real rigidities could interact with nominal rigidities to create significant disequilibrium. Real rigidities occur whenever a firm is...

discrete time version. The Calvo model is the most common way to model nominal rigidity in new Keynesian DSGE macroeconomic models. We can define the probability...

a relative value of another.: 365  Real rigidities can be distinguished from nominal rigidities, rigidities that do not adjust because prices can be...

real business cycle theory and new Keynesian economics contributed nominal rigidities (slow moving and periodic, rather than continuous, price changes also...

for money Liquidity preference Money supply National accounts SNA Nominal rigidity Price level Recession Shrinkflation Stagflation Supply shock Saving...

for money Liquidity preference Money supply National accounts SNA Nominal rigidity Price level Recession Shrinkflation Stagflation Supply shock Saving...

to a nominal APR or an effective APR (EAPR). The difference between the two is that the EAPR accounts for fees and compounding, while the nominal APR does...

the future. Positive effects include reducing unemployment due to nominal wage rigidity, allowing the central bank greater freedom in carrying out monetary...

bound. Central banks typically use a nominal anchor to pin down expectations of private agents about the nominal price level or its path or about what...

authorities to defend the gold parity of the pound sterling and the rigidity of nominal wages, he gradually adhered to protectionist measures. On 5 November...

is useful as a policy target only if the relationship between money and nominal GDP, and therefore inflation, is stable and predictable. This implies that...

(1937) and A. Hansen (1949), the clarification of the role of the rigidity of nominal wages in the Keynesian model in the work of F. Modigliani (1944)...

economists had reached a rough consensus. The market imperfections and nominal rigidities of new Keynesian theory was combined with rational expectations and...

for money Liquidity preference Money supply National accounts SNA Nominal rigidity Price level Recession Shrinkflation Stagflation Supply shock Saving...

loan money. Money supply in effect is perfectly inelastic with respect to nominal interest rates. Thus the money supply function is represented as a vertical...

for money Liquidity preference Money supply National accounts SNA Nominal rigidity Price level Recession Shrinkflation Stagflation Supply shock Saving...

(1990) showed that real rigidities could interact with nominal rigidities to create significant disequilibrium. Real rigidities occur whenever a firm is...

for money Liquidity preference Money supply National accounts SNA Nominal rigidity Price level Recession Shrinkflation Stagflation Supply shock Saving...

conventionally measure such growth as the percent rate of increase in the real and nominal gross domestic product (GDP). Growth is usually calculated in real terms...

5 trillion tax cut is virtually paid for by higher revenues and better nominal GDP." Beginning in 2012, China's economic performance entered a "new normal...

in which conventional monetary policies have become impotent, because nominal interest rates are at or near zero: injecting monetary base into the economy...

depicted, where: G stands for government spending T for taxation Y for nominal GDP I for private investment X for exports c for propensity to consume...

discretionary changes in aggregate public spending and the short-term nominal interest rate. "Freshwater economists" often reject the effectiveness of...

factors only. Nominal factors like changes in the money supply only affect nominal variables like inflation. The neoclassical idea that nominal factors cannot...

for money Liquidity preference Money supply National accounts SNA Nominal rigidity Price level Recession Shrinkflation Stagflation Supply shock Saving...

distinction between overall increases or decreases in prices and underlying, “nominal” economic variables. Thus, if prices overall increase or decrease, it is...

Laurence M. Ball and David Romer on the interaction between real and nominal rigidities. In 2002, Mankiw and Ricardo Reis proposed an alternative to the widely-used...