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derived and simulated. First of all, the monetary persistence of a pure price staggering economy is compared to a pure wage …
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countercyclical idiosyncratic labor and asset risk. We derive conditions under which the aggregate allocations and price system can be … preference shocks. When price rigidity is the only friction, the optimal monetary policy calls for stabilizing the inflation rate …
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an interest rate innovation depends on the degree of wage rigidity. Generally, more rigid wages translate into more …
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The Great Recession has witnessed not only a marked disruption in the credit markets and a sharp increase of capital unemployment but also a severe deterioration of the matching efficiency in the labor market, as evidenced by the historically high unemployment rate and a significant outward...
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