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This paper investigates whether systematic monetary policy can affect output in a dynamic menu cost model which results in (S,s) price rules. It will be shown that monetary policy potentially can affect output, not only in the short run but also the long run average output. That is, even though...
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level to a temporary risk premium shock are larger and more persistent when the ZLB is binding. Our theoretical discussion …
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cost channel theory. Taken together, the results of both panel data and time series analyses imply that the ECB’s low …
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