Considerable micro-level evidence suggests that price/wage contract durations fluctuate with the state of the economy, particularly inflation; nonetheless, macro-level evidence for this is scarce. We incorporate state-dependent price/wage setting into an open economy DSGE model to investigate...

Decline in public interest to "pure" economic theory is disturbing fact. This paper considers the main macroeconomic hypothesis through their implementation in practice - macroeconomic policies in the USA, in post-soviet countries (Russia and Georgia) and Turkey as well. Stabilization policy of...