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| Topic: |
Business
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| Number of pages / Number of words: |
37 / 10244 |
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The model provides a simple but
flexible framework for understanding a number of issues that have previously been dealt
with using a range of di erent speci cations. In particular, the model sheds light on some
important existing critiques regarding the general ability of sticky-price models to capture
the e ects of disinflationary monetary policies...
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In particular, the model sheds light on some
important existing critiques regarding the general ability of sticky-price models to capture
the e ects of disinflationary monetary policies.
One such critique that we consider stems from Laurence Ball's (1994) well-known ex-
ample of a sticky-price economy in which an announcement of a gradual reduction in the
rate of growth of the money supply results in a boom in output...
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