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Another look at sticky prices and output persistence

Wang, Peng-fei (contributor); Wen, Yi (contributor) - 2005

"Price rigidity is the key mechanism for propagating business cycles in traditional Keynesian theory. Yet the New Keynesian literature has failed to show that sticky prices by themselves can effectively propagate business cycles in general equilibrium. We show that price rigidity in fact can (by...

Persistent link: https://www.econbiz.de/10002956723