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 … equilibrium. We show that price rigidity in fact can (by itself) give rise to a strong propagation mechanism of the business cycle …, we show that reasonable price stickiness can generate highly persistent, hump-shaped movements in output, investment and …