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models, prices are sticky by assumption. Here it is a result. We use search theory, with two consequences: prices are set in …
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This paper analyzes the quantitative significance of Sargent and Wallace's (1981) "Some Unpleasant Monetarist Arithmetic" in a model that is parameterized to correspond with U.S. data. The major result is that the monetarist arithmetic is not overly unpleasant and that the nominal side of the...
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Given the inherent complexity of the current inflation problem and the tendency of individuals to differ in their … interpretation of events, it is not surprising that a number of competing theories of inflation exist today …
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There has been a long drawn out controversy over explanation of inflation between Classicals, Keynesians, Monetarists … explanation of inflation holds in India for the period 1992 to 2013. The paper tests the presence of a unidirectional causality …
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-pricing theory, is calibrated to analyze the effects of monetary policy and financial innovation. We show that inflation can raise … output, employment and investment, plus improve housing and stock markets. For the baseline calibration, optimal inflation is …
Persistent link: https://www.econbiz.de/10012459653
money may lead to a transitory increase in seigniorage, the retirement of government debt, and lower inflation in both the … low money growth is conditional on inflation remaining below its previous level …
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