If nominal wages adjust less frequently than prices, a constant rate of growth of the quantity of money will produce cyclical fluctuations of production and inflation. The same phenomenon can modify the average long run production of the economy, generating Phillips curves sometimes with a...

In a quite simplified model, when nominal wages are completely predetermined, different macroeconomic shocks produce oscillations in output and inflation that can be stable or explosive. If they are stable, in many cases a peculiar dynamics, perhaps complex, appears, where output and inflation...