BONOMO, MARCO; CARVALHO, CARLOS - In: Journal of Money, Credit and Banking 42 (2010) 5, pp. 799-831
The real effects of an imperfectly credible disinflation depend critically on the extent of price rigidity. We examine this interaction in a model with endogenous time-dependent pricing. Both the endogenous initial degree of price rigidity and changes in the duration of price spells during...