Andreou, Elena; Sensier, Marianne; Pelloni, Alessandra - Rimini Centre for Economic Analysis (RCEA) - 2008
We provide empirical support for a DSGE model with nominal wage stickiness where growth is driven by learning-by-doing and money shocks and their variance are allowed to impact on long-run output growth. In our theoretical model the variance of monetary shocks has a negative effect on growth,...