Alex Ho, Wai-Yip; Yetman, James - In: The North American Journal of Economics and Finance 19 (2008) 3, pp. 261-273
We examine the long-run output-inflation trade-off under the assumption that firms face menu costs and set prices in a state dependent fashion. We argue that these characteristics capture the idea that the long-run output-inflation trade-off is driven by (predictable) trend inflation, and the...
