Chiarella, Carl; Hung, Hing; Flaschel, Peter - In: Czech Economic Review 4 (2010) 3, pp. 236-262
We reformulate the traditional AS-AD growth model, with a Taylor policy rule replacing the conventional LM-curve. The essential features of the model are gradually adjusting wages and prices, perfect foresight on current inflation rates and an adaptive revision of the inflationary climate in...