Aksoy, Yunus; Basso, Henrique S.; Martinez, Javier Coto - In: Central Bank Review 11 (2011) 2, pp. 1-13
We show that a standard DSGE model with investment cost channels has important model stability and policy implications. Our analysis suggests that in economies characterized by supply side well as demand side channels of monetary transmission, policymakers may have to resort to a much more...