Liu, Zheng (contributor); Waggoner, Daniel F. (contributor); … - 2007
), along with Lubik
and Schorfheide (2004) and Boivin and Giannoni (2006), studies macroeconomic ef-
fects of two different …-dependent nature of price setting in the Calvo model. Indeed, some
studies show that in an environment with low and stable inflation …
represents a claim to one dollar in a particular event in period t + 1, and this claim
costs Dt;t+1 dollars in period t; Wt(i) is …