DiCecio, Riccardo (contributor); Nelson, Edward (contributor) - 2007 - Rev.
movements
reflect opening up of the output gap and so inflationary pressure. It is precisely this type
of output variation … side of the CEE model. In
the standard sticky-price model the impulse responses of output and the output gap to a … demand. Therefore, in the wake
of a monetary policy shock, policymaker stabilization of the output gap and inflation
takes …