In this paper we consider a nonlinear model for the real economy described by a multiplier-accelerator setup. The model comprises the government sector, which influences the output dynamics by means of the fiscal policy, and the money market, where the money supply depends upon the fluctuations...

In this paper we analyze a basic sticky price model with monopolistic competition and price stickiness à la Calvo. Starting by the relations describing a general economic equilibrium model (see Woodford in Interest and Prices, Foundations of a Theory of Monetary Policy, The MIT Press, 2003), as...