Modelling nominal rigidities in general dynamic equilibrium framework
The widely-used "New Keynesian' model assumes that there is no price flexibility, but prices and wages are extremely "sticky'. In such a model, it is also usual to assume some scheme of lagged indexation which increases the stickiness of inflation. Theoretically, however, we have...
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Cardiff University
2008
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| Online Access: | http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.584429 |