in the data than in the theoretical model. We show that introducing real wage rigidity can remedy this problem. -- Spill …

This paper analyzes the cost of disinflation under real wage rigidities in a micro-founded New Keynesian model. Unlike … adjustment paths. In particular, a disinflation implies a prolonged slump without any need for real wage rigidities. …

-over effects. Among other things, it is found that aggregate output volatility is not strictly increasing in nominal rigidity but …

We develop a utility based model of fluctuations, with nominal rigidities, and unemployment. In doing so, we combine … two strands of research: the New Key- nesian model with its focus on nominal rigidities, and the Diamond … first leave nominal rigidities aside. We show that, under a standard utility specification, productivity shocks have no …

Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with … hyperbolic discounting leads to inflation having significant long-run effects on real variables. …

In sticky price models with endogenous investment, virtually all monetary policy rules that set a nominal interest rate … in response solely to future inʿation induce real indeterminacy of equilibrium. Applying the Samuelson …-Farebrother conditions, we obtain a necessary and suffcient condition for local real determinacy, which reveals that increasing price …

A major criticism against staggered nominal contracts is that they give rise to the so called "persistency puzzle … equilibrium setting (in which real variables not only affect inflation, but are also influenced by it), standard wage …-run. This is due to frictional growth, a phenomenon that captures the interplay of nominal staggering and permanent monetary …