John, A. Andrew; Wolman, Alexander L. - In: Journal of Monetary Economics 55 (2008) 2, pp. 383-405
State-dependent pricing models are now an operational framework for quantitative business cycle analysis. The analysis in Ball and Romer [1991. Sticky prices as coordination failure. American Economic Review 81 (3), 539-552], however, suggests that such models may be rife with multiple...