A Dynamic Economy with Costly Price Adjustment

Preprint OPEN
Leif Danziger;
  • Subject:
    • jel: jel:E31 | jel:E32

This paper studies a general-equilibrium model of a dynamic economy with menu costs. Each firm's productivity is exposed to idiosyncratic and aggregate productivity shocks around a trend, and the money supply to monetary shocks around a trend. All consumption, pricing, ... View more
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