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Endogenous Growth, Monetary Shocks and Nominal Rigidities

Listed author(s):
  • Annicchiarico, Barbara
  • Pelloni, Alessandra
  • Lorenza, Rossi

We introduce endogenous growth in an otherwise standard NK model with staggered prices and wages. Some results follow: (i) monetary volatility negatively affects long-run growth; (ii)the relation between nominal volatility and growth depends on the persistence of the nominal shocks and on the Taylor rule considered; (iii) a Taylor rule with smoothing increases the negative effect of nominal volatility on mean growth.

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File URL: https://mpra.ub.uni-muenchen.de/25647/1/MPRA_paper_25647.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25647.

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Date of creation: Aug 2010
Handle: RePEc:pra:mprapa:25647
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  10. Varvarigos, Dimitrios, 2008. "Inflation, variability, and the evolution of human capital in a model with transactions costs," Economics Letters, Elsevier, vol. 98(3), pages 320-326, March.
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