in response solely to future in°ation induce real indeterminacy of equilibrium. Applying the Samuelson … by itself has a quantitatively negligible effect and almost all strict inflation-targeting rules lead to indeterminacy … stickiness, indeterminacy is much less likely to occur as policy also responds to output. With estimated labor supply elasticity …

in response solely to future inflation induce real indeterminacy of equilibrium. Applying the Samuelson … by itself has a quantitatively negligible effect and almost all strict inflation-targeting rules lead to indeterminacy … stickiness, indeterminacy is much less likely to occur as policy also responds to output. With estimated labor supply elasticity …

A challenge facing the literature of equilibrium indeterminacy and sunspot-driven business cycle fluctuations based on … increasing returns to scale in production is that the required degree of increasing returns for generating indeterminacy can be … relative wage effect can both lower the required degree of increasing returns for indeterminacy to an empirically plausible …

A challenge to models of equilibrium indeterminacy based on increasing returns is that required increasing returns for … generating indeterminacy can be implausibly large and rise quickly with the relative risk aversion in labor. We show that … unsynchronized wage adjustment via a relative wage effect can both lower the required degree of increasing returns for indeterminacy …