Leith, Campbell; Moldovan, Ioana; Rossi, Raffaele - Department of Economics, Adam Smith Business School - 2008
: E30, E57 and E61
• Key Words: consumption habits, nominal inertia, optimal monetary policy
1Introduction
Within the … with nominal
inertia.
The plan of the paper is as follows: in the next section we outline our model with deep
and … good and are subject to nominal inertia in the form
of Calvo (1983) contracts. This structure is adopted for reasons of …