Wang, Peng-fei (contributor); Wen, Yi (contributor) - 2005
"Price rigidity is the key mechanism for propagating business cycles in traditional Keynesian theory. Yet the New … Keynesian literature has failed to show that sticky prices by themselves can effectively propagate business cycles in general … equilibrium. We show that price rigidity in fact can (by itself) give rise to a strong propagation mechanism of the business cycle …