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Topic: Business
Number of pages / Number of words: 37 / 10244
Essay's paper body

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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