How to Compare Taylor and Calvo Contracts: A Comment on Michael Kiley

Article, Preprint OPEN
Huw Dixon; Engin Kara;
  • Journal: Journal of Money, Credit and Banking,volume 38,issue 4 jun,pages1,119-1,126
  • Related identifiers: doi: 10.1353/mcb.2006.0055
  • Subject: Calvo; Taylor; contract length

In a recent paper, Michael Kiley argued that the Calvo model of price adjustment is both quantitatively and qualitatively different from the Taylor model. What we show is that Kiley (along with most other people) are choosing the wrong parameterization to compare the tw... View more
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