Ascari, Guido (contributor); Merkl, Christian (contributor) - 2007
wages. Note
that this is the nonlinear counterpart of the partial adjustment model for the real wage
employed in many of the …�ation, real wages, and the nominal interest
rate in response to such a policy change in the log-linear model.6 In the absence of …. There are no adjustment dynamics of real wages or
in�ation, and thus, no slump in output along the adjustment path.
5 …