inflation. Previous studies, which assume a constant degree of price rigidity across inflation regimes, find two time consistent … equilibria - one with low inflation, the other with high inflation. In contrast, when price rigidity is endogenous, the high … inflation equilibrium ceases to exist. Hence, time consistent equilibrium is unique. This result depends on two features of the …

Since the publication of Keynes' "General Theory of Employment, Interest, and Money" in 1936 many new ideas and … control for the inflation rate. Fourth, traditional New Keynesian approaches analyze the impacts of fiscal stimuli on standard …