Ravenna, Federico; Walsh, Carl E. - 2009
Carl E. Walsh
∗
April 2009
Abstract
We explore the distortions in business cycle models arising from inefficiencies in
price … stability are larger in economies
with more volatile labor flows, as in the U.S.
JEL: E52, E58, J64
∗
Department of Economics …. Email: fravenna@ucsc.edu, walshc@ucsc.edu.
1
1Introduction
This paper explores optimal monetary policy in business cycle …