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Labor market search, sticky prices, and interest rate policies

Review of Economic Dynamics, no. 4 (2005): 829-849

Cited: 427|Views4
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What accounts for the significant real effects of monetary policy shocks? And what accounts for the persistent and hump shaped responses of output and inflation in response to such shocks? These questions are investigated in a model that incorporates labor market search, habit persistence, sticky prices, and policy inertia. While habit pe...More

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