Johri, Alok - Department of Economics, McMaster University - 2007
, Business Cycles, In�a-
tion, Nominal rigidities, Learning-by-doing, Habit formation, Propa-
gation mechanisms, Persistence.
1 … to slow down the
adjustment of prices is to introduce mechanisms that prevent marginal costs
from rising too fast. The … two mechanisms that build upon each other to quan-
titatively generate realistic persistence in in�ation and output. The …