Ascari, Guido; Merkl, Christian - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
This paper analyzes the cost of disinflations under real wage rigidities in a micro-foundedNew Keynesian model. The consensus is that real wage rigidities can be a useful mechanismto induce the inflation persistence that is absent in the standard Calvo model...