This paper studies the role of endogenous producer entry and product creation for monetary policy analysis and business cycle dynamics in a general equilibrium model with imperfect price adjustment. Optimal monetary policy stabilizes product prices, but lets the consumer price index vary to...

Ziel der vorliegenden Arbeit ist es zu prüfen, inwieweit unterschiedliche Varianten berechenbarer dynamischer Gleichgewichtsmodelle die empirische Evidenz zum monetären Transmissionsmechanismus nachbilden. Die zentrale Frage dieser Arbeit, inwieweit nominale Rigiditäten zu Trägheiten des...

Two dynamic sticky price models with monopolistic competition in the goods market are presented. In the first model, each intermediate goods producer faces quadratic costs of adjusting its nominal price as introduced by Rotemberg (1982); the second model incorporates staggered price setting as...