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STICKY PRICE AND STICKY INFORMATION PRICE-SETTING MODELS: WHAT IS THE DIFFERENCE?

โœ Scribed by BENJAMIN D. KEEN


Book ID
110929672
Publisher
Oxford University Press
Year
2007
Tongue
English
Weight
277 KB
Volume
45
Category
Article
ISSN
0095-2583

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The real effects of inflation in continu
โœ Wai-Yip Alex Ho; James Yetman ๐Ÿ“‚ Article ๐Ÿ“… 2007 ๐Ÿ› John Wiley and Sons ๐ŸŒ English โš– 293 KB

## Abstract We demonstrate the important implications of the assumptions of discrete time in many sticky price models of the macroeconomy. For a given level of menu costs, discrete time models imply longer average contract length but smaller real effects of both trend inflation and monetary shocks