Hahn, Volker - In: Journal of Money, Credit and Banking 54 (2021) 2-3, pp. 459-491
with profit‐maximizing behavior under Calvo pricing when long‐run inflation is positive. Our model, which relaxes this … assumption, predicts that inflation causes a substantially smaller loss in effective aggregate productivity compared to a … benchmark model without the possibility of rationing. Moreover, under positive inflation, firms choose smaller markups over …