Meenagh, David (contributor); Minford, Patrick (contributor) - 2008
high degree of nominal
rigidity to the model, both of prices and inflation. A central tenet of New-Keynesian authors is … persistence in output and inflation, and hump-shaped responses to monetary policy
shocks. In this paper we probe this argument …
example inflation and interest rates regressed only on their own individual past (a diagonalised
VAR). Suppose that the model …