Blanchard, Olivier (contributor); Galí, Jordi (contributor) - 2006
assumed
to be constant. Our speciflcation is, instead, one often used in models of the
business cycle, given its consistency … accumulation. In the presence of capital accumulation,
employment would typically move, as it does in conventional real business … literature on monetary business cycle models, we
introduce sticky prices in our model with labor market frictions using the for …