Affiliation:
1. China Economics and Management Academy, Central University of Finance and Economics, Beijing, China
Abstract
Abstract
Garín et al.’s (2019) empirical study shows that a positive technology shock is more expansionary when the ZLB binds than when it does not. This cannot be explained by a basic new-Keynesian model with sticky prices. In this paper, I resolve this puzzle by extending the model to include wage stickiness. (JEL codes: E32, E52, E62, N12)
Publisher
Oxford University Press (OUP)
Subject
Economics and Econometrics,Geography, Planning and Development
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