Christiano, Lawrence J.; Ilut, Cosmin; Motto, Roberto - 2008
and employment all rise and then crash) in response to such a news shock, in a standard real business cycle model. However …-technical summary 5
1 Introduction 7
2 Real business cycle model 15
2.1 The model 15
2.2 Results 18
2.3 The price of capital 21
3 …, in a standard real business cycle model.
However, a monetized version of the model which stresses sticky wages and a …