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"This paper summarizes recent developments in the theory and practice of monetary policy in a closed economy and …
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predictions of interest rates based on a general equilibrium theory are partially consistent with US data"--Federal Reserve Bank …
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"We analyze optimal monetary policy in an endogenous sticky price model. Similar models with exogenous sticky prices can deliver multiplicity of equilibria. Multiplicity of equilibria is a necessary condition for expectation traps to explain the variation across time and countries of inflation...
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