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This paper investigates optimized monetary policy rules in the presence of government intervention to stabilize prices of certain categories of goods and services. The paper estimates a small-scale, structural equilibrium model with a sticky-price sector and a subsidized price sector for a large...
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This paper studies the effect on monetary policy of differing degrees of competition and differing degrees of nominal … International Economics 63, 293-320] by showing that, if the degree of competition differs between countries, the optimal rule could …
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