Monetary shocks and sticky wages in the US great contraction: A multi-sector approach

• 成果类型: Article
• 署名作者: Amaral, Pedro S.; MacGee, James C.
• 署名单位: California State University System; California State University Fullerton; Western University (University of Western Ontario)
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2017.08.003
• 发表日期: 2017
• 页码: 112-129
• 关键词: Great depression; Sectoral models; Sticky wages

摘要

We quantify the role of contractionary monetary shocks and nominal wage rigidities in the U.S. Great Contraction. In contrast to conventional wisdom, we find little increase in the economy-wide real wage over 1929-33, although real wages rose significantly in some industries. In the context of a two-sector model with intermediates and nominal wage rigidities in one sector, contractionary monetary shocks account for only a third of the fall in GDP. Intermediate linkages play an important role, as the output decline without intermediates is almost a third larger at the trough. The role of nominal wage rigidities beyond their interaction with monetary shocks is limited. (C) 2017 Elsevier B.V. All rights reserved.