Sticky prices and volatile output.
We examine the effect of introducing a specific type of price stickiness into a stochastic growth model subject to a cash in advance constraint. As in previous studies we find the introduction of price rigidities provides a substantial source of monetary non-neutrality, which contributes significant...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
| Published: |
Bank of England
2001
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