Original: This research lead to a paper published with John Taylor in 1977 , '' Stabilizing Powers of Monetary Policy under Rational Expectations '' ( see Selected Publications ) proving that staggered wage setting gives monetary policy a role in stabilizing economic fluctuations .
Simplified: Professor Phelps and John Taylor published research in 1977 , '' Stabilizing Powers of Monetary Policy under Rational Expectations '' ( see Selected Publications ) about how to calculate wages ( '' Staggered Wages ) .