Monetary Policy in an Economy with Nominal Wage Contracts

Carlstrom, Charles T.

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Working Paper

Monetary Policy in an Economy with Nominal Wage Contracts

Charles T. Carlstrom

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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.

12.01.1987WP 87-10

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.

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Monetary Policy in an Economy with Nominal Wage Contracts

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