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Working Paper

Monetary Policy in an Economy with Nominal Wage Contracts

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A demonstration that optimal monetary policy can be either procyclical or countercyclical in a model where wages are "sticky" because of a nominal contracting constraint.
12.01.1987ISSN 2573-7953 WP 87-10

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.

Suggested Citation

Carlstrom, Charles T. 1987. “Monetary Policy in an Economy with Nominal Wage Contracts.” Federal Reserve Bank of Cleveland, Working Paper No. 87-10.