Paustian, Matthias; Stoltenberg, Christian - Sonderforschungsbereich 649: Ökonomisches Risiko, … - 2006
price setting, monetary friction, Friedman’s rule.
⁄We are especially thankful to Tim Fuerst, Harald Uhlig, Juergen von … the presence of a monetary
friction. The predominant principle is in ation stabilization, while the nominal interest
rate … the steady state. If
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calls for an in ation rate of zero, while the monetary friction requires de ation. Corre …