Mastrobuoni, Giovanni - Griswold Center for Economic Policy Studies, Department … - 2004
Labor Lunch Seminar.
Keywords: euro, currency changeover, imperfect information, search costs, price setting.
JEL … why cheaper goods may be more subject to price increases after
a currency changeover. In the model consumers are rational … higher than p0, the
optimal price before the currency changeover. If I set pee = p0, then III = 0 and
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the FOC simplifles …