Abo-Zaid, Salem - Volkswirtschaftliche Fakultät, … - 2009
shows that when nominal wages are downwardly rigid, optimal monetary policy targets a positive inflation rate; the annual … long-run inflation rate is around 2 percent. Positive inflation in this environment “greases the wheels” of the labor …, particularly those of large sizes. Finally, the optimal long-run inflation rate predicted by this study is considerably higher than …