Different methods have been used in the literature to measure and analyze price markup cyclicalbehavior. We use a medium-scale DSGE Model with positive trend inflation, in which neutral technology,the marginal efficiency of investment, and monetary policy shocks drive aggregate fluctuations and...

We introduce endogenous growth in an otherwise standard NK model with staggered prices and wages. Some results follow: (i) monetary volatility negatively affects long-run growth; (ii) the relation between nominal volatility and growth depends on the persistence of the nominal shocks and on the...