高宏Chapter 5.ppt

Chapter 5 Traditional Keynesian Theories of Fluctuations 周泳宏 tzhouyhjnu@jnu.edu.cn introduction Sluggish price adjustment creates a channel other than the intertemporal-substitution and capital-accumulation mechanisms of basic RBC models through which these shocks affect employment and output There are barriers to the instantaneous adjustment of nominal prices and wages Sluggish nominal adjustment causes changes in the aggregate demand for goods at a given level of prices to affect the amount that firms produce As a result, it causes purely monetary disturbances to change employment and output