Edge, Rochelle M.; Laubach, Thomas; Williams, John C. - Federal Reserve Bank of San Francisco - 2003
-founded dynamic general equilibrium (DGE) model of the U.S. economy with sticky wages and sticky prices using impulse responses to … sluggish adjustment of both the levels of these variables as in standard contracting models as well as intrinsic inertia in … inflation inertia like that commonly found in models used for monetary policy evaluation. On the wage front, we find evidence …