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rigidities impede policymakers' ability to control inflation. And third, we describe how alternative shock/rigidity combinations …
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an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average …
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This paper makes changes in monetary policy rules (or regimes) endogenous. Changes are triggered when certain endogenous variables cross specified thresholds. Rational expectations equilibria are examined in three models of threshold switching to illustrate that (i) expectations formation...
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