Article citationsMore>>

P. Beaudry and F. Portier, “An Exploration into Pigou’s Theory of Cycles,” Journal of Monetary Economics, Vol. 51, No. 6, 2004, pp. 1183-1216. doi:10.1016/j.jmoneco.2003.10.003

has been cited by the following article:

• TITLE: Note on Nominal Rigidities and News-Driven Business Cycles

  AUTHORS: Kengo Nutahara

  KEYWORDS: Nominal Rigidities; News-Driven Business Cycles

  JOURNAL NAME: Theoretical Economics Letters, Vol.2 No.5, December 19, 2012

  ABSTRACT: A news-driven business cycle is a positive comovement of consumption, output, labor, and investment from the news about the future. We show that nominal rigidities, especially sticky prices, can cause it in a medium-scale DSGE economy through countercyclical movements of the price-markup. We also find that sticky wages cannot generate it, but they amplify the effects of news shocks.