Open economy New Keynesian macroeconomic models and the cost channel
Evidence in the literature points to a puzzling initial increase in inflation after an increase in nominal interest rates. This can be explained by the fact that firms have to borrow money to pay wages in advance, i.e., by the cost channel. In this paper, the study of the cost channel is extended to...
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University of Leicester
2010
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| Online Access: | http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.522641 |