In recent decades, advanced economies have experienced low and stable inflation and long periods of liquidity trap. We … which inflation is fixed and not determined by a forward-looking Phillips curve. With wealth in the utility, the Euler … equation is modified and we can obtain steady-state equilibria with a liquidity trap, positive inflation, and labor market …

of "local-to-frictionless" equilibria predicts mild inflation, no output reduction and negative multipliers during the …

The New-Keynesian aggregate supply derives from micro-foundations an inflation-dynamics model very much like the … tradition in the monetary literature. Inflation is primarily affected by: (i) economic slack; (ii) expectations; (iii) supply … shocks; and (iv) inflation persistence. This paper extends the New Keynesian aggregate supply relationship to include also …