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"This paper provides a simple dynamic optimization model of durable goods inventories. Closed-form solutions are derived in a general equilibrium environment with imperfect information and serially correlated shocks. The model is then applied to scrutinize some popular conjectures regarding the...
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"Price rigidity is the key mechanism for propagating business cycles in traditional Keynesian theory. Yet the New … employment in response to either monetary or non-monetary shocks, even if investment is only partially cash …
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