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K. Nutahara, “Internal and External Habits and News-Driven Business Cycles,” Economics Letters Vol. 107, No. 2, 2010, pp. 300-303. doi:10.1016/j.econlet.2010.02.018

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.