Karanassou, Marika; Sala, Héctor; Snower, Dennis J. - Institut für Weltwirtschaft (IfW) - 2005
interplay between nominal frictions and money growth. When the money supply grows in the presence of price inertia (due to … able to work themselves out fully. In this context, temporary nominal rigidities let monetary policy have permanent real … effects. Although our theory contains no money illusion, no permanent nominal rigidities, and no departure from rational …