Bilbiie, Florin O.; Fujiwara, Ippei; Ghironi, Fabio - In: Journal of Monetary Economics 64 (2014) C, pp. 1-20
Deviations from long-run price stability are optimal in the presence of endogenous entry and product variety in a … sticky-price model in which price stability would be optimal otherwise Long-run inflation (deflation) is optimal when the …-run inflation rates. However, short-run price stability (around this non-zero trend) is close to optimal, even in the presence of …