hence allowing for a rigorous understanding of nominal rigidity. This has led to a shift away from perfect competition in …

The combination of discretionary monetary policy, labor-market distortions and nominal wage rigidity yields an … inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions Although an … if fiscal policy is set at a higher frequency than nominal wages are. To avoid the associated excessive accumulation of …

facts as well as macro facts, provided one allows for moderate real wage stickiness and provided one allows for sufficient …