monetary policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We …

policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We …

policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We …

This paper proposes a dynamic stochastic general equilibrium model that endoge­nously generates inflation persistence … contrast with traditional sticky price models, the framework yields inflation inertia, a delayed effect of monetary policy … shocks on inflation, and the observed "reverse dynamic" correlation between inflation and economic activity …

-run inflation-unemployment tradeoff. …