Merkl, Christian (contributor); … - 2007
)) V (Nt (h))+Z(Mt (h)=Pt+j),
U0;V0;Z0 > 0;U";Z" < 0;V" < 0, where Ct (h) is its consumption,13 Nt (h) is its
employment … able
to reset the wages immediately and this may have implications for employment.
Although Barro (1977) and others have … written that it is ine� cient to set wages
and employment independently, it is very uncommon in practice for employers to
make …