Publication
Jun 2007
This paper develops a utility-based model of fluctuations, with nominal rigidities, and unemployment. The authors introduce nominal rigidities in the form of staggered price setting by firms and show the nature of the tradeoff between inflation and unemployment stabilization. Finally the authors draw the implications for optimal monetary policy.
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English (PDF, 51 pages, 520 KB) |
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Author | Olivier Blanchard, Jordi Galí |
Series | Kiel Institute Working Papers |
Issue | 1335 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2007 Kiel Institute for the World Economy |