Does nominal wage stickiness affect fiscal multiplier in a two-agent new Keynesian model?

Almgren, M., Gallegos, J.E., Kramer, J., Lima, R., 2019. Monetary Policy and Liquidity Constraints: Evidence from the Euro Area. Available at SSRN 3422687 .

Ascari, G., Colciago, A., Rossi, L., 2017. Limited asset market participation, sticky wages and monetary policy. Economic Inquiry 55, 878–897.

Bernanke, B.S., 2003. Some Thoughts on Monetary Policy in Japan: Remarks before the Japan Society of Monetary Economics, Tokyo, Japan. the Federal Reserve System. http://www. federalreserve. gov/boarddocs/speeches/2003/20030531 .

Bilbiie, F.O., 2008. Limited asset market participation, monetary policy and (inverted) aggregate demand logic. Journal of Economic Theory 140, 162–196.

Bilbiie, F.O., 2009. Nonseparable preferences, fiscal policy puzzles, and inferior goods. Journal of Money, Credit and Banking 41, 443–450.

Blanchard, O., 2023. Fiscal Policy Under Low Interest Rates. MIT press.

Blanchard, O., Perotti, R., 2002. An empirical characterization of the dynamic effects of changes in government spending and taxes on output. Quarterly Journal of Economics 117, 1329–1368.

Calvo, G.A., 1983. Staggered prices in a utility-maximizing framework. Journal of Monetary Economics 12, 383–398.

Campolmi, A., 2014. Which inflation to target? a small open economy with sticky wages. Macroeconomic Dynamics 18, 145–174.

Christiano, L.J., Eichenbaum, M., Evans, C.L., 2005. Nominal rigidities and the dynamic effects of a shock to monetary policy. Journal of Political Economy 113, 1–45.

Cochrane, J., 2022. The Fiscal Theory of the Price Level. Princeton University Press. Colciago, A., 2011. Rule of thumb consumers meet sticky wages. Journal of Money, Credit, and Banking 43, 325–353.

Eggertsson, G.B., 2011. What fiscal policy is effective at zero interest rates? NBER Macroeconomics Annual 25, 59–112.

Erceg, C.J., Henderson, D.W., Levin, A.T., 2000. Optimal monetary policy with staggered wage and price contracts. Journal of Monetary Economics 46, 281–313.

Friedman, M., 1969. The Optimum Quantity of Money: And Other Essays. Aldine Publishing Company. URL: https://books.google.co.jp/books?id=WzGaAAAAIAAJ.

Gal´ı, J., 2011. The return of the wage phillips curve. Journal of the European Economic Association 9, 436–461.

Gal´ı, J., 2013. Notes for a new guide to Keynes (I): wages, aggregate demand, and employment. Journal of the European Economic Association 11, 973–1003.

Gal´ı, J., 2020a. The effects of a money-financed fiscal stimulus. Journal of Monetary Economics 115, 1–19.

Gal´ı, J., 2020b. Helicopter money: The time is now. Mitigating the COVID Economic Crisis: Act Fast and Do Whatever 31, 31–39. Gal´ı, J., L´opez-Salido, D.J., Javier, V., 2007. Understanding effects of government spendig on consumption. Journal of European Economic Association 5, 227–270.

Ida, D., 2023. Liquidity-constrained consumers and optimal monetary policy in a currency union. Journal of International Money and Finance 131, 102787.

Ida, D., Okano, M., 2022. International heterogeneity of nominal wages and optimal monetary policy. International Finance Article in Press.

Kaplan, G., Violante, G.L., Weidner, J., 2014. The wealthy hand-to-mouth. Technical Report. National Bureau of Economic Research.

Keynes, J.M., 1936. The General Theory of Employment, Interest and Money. Macmillan. 14th edition, 1973.

Kopiec, P., 2022. The government spending multiplier in the heterogeneous agent new Keynesian model. European Economic Review 145, 104125.

Liu, S.F., Huang, W.C., Lai, C.C., 2022. The paradox of toil at the zero lower bound in a TANK model. European Economic Review 148, 104230.

Okano, E., Eguchi, M., 2021. The Effects of Money-financed Fiscal Stimulus in a Small Open Economy. Technical Report. CEPREMAP.

Palomino, J.C., Rodr´ıguez, J.G., Sebastian, R., 2020. Wage inequality and poverty effects of lockdown and social distancing in Europe. European Economic Eeview 129, 103564.

Punzo, C., Rossi, L., 2022. A money-financed fiscal stimulus: Redistribution and social welfare. Journal of Money, Credit and Banking .

Reis, R., Tenreyro, S., 2022. Helicopter money: what is it and what does it do? Annual Review of Economics 14.

Rhee, H.J., Turdaliev, N., 2013. Optimal monetary policy in a small open economy with staggered wage and price contracts. Journal of International Money and Finance 37, 306– 323.

Taylor, J.B., 1993. Discretion versus policy rules in practice. Carnegie-Rochester Conference Series on Public Policy 39, 195–214.

Tsuruga, T., Wake, S., 2019. Money-financed fiscal stimulus: The effects of implementation lag. Journal of Economic Dynamics and Control 104, 132–151.

Turner, A., 2015. The case for monetary finance–an essentially political issue, in: 16th Jacques Polak Annual Research Conference, pp. 5–6.

Woodford, M., 2003. Interest and Prices: Foundations of a Theory of Monetary Policy. Princeton Princeton University Press, Princeton.

Woodford, M., 2011. Simple analytics of the government expenditure multiplier. American Economic Journal: Macroeconomics 3, 1–35.