The paper investigates how the interplay between business cycles and long-run growth shapes the dynamics of economies characterized by financial market imperfections. Most of standard economic literature has centered the analysis of decentralized economies on the representative agent hypothesis...

In this paper we assess the stability of open economy backward looking Phillips curves estimated across two different exchange rate regimes. The time series we deal with come from the simulation of a New-Keynesian hybrid model suited for performing monetary policy analysis. The statistical...