Bullard, James B.; Eusepi, Stefano - Federal Reserve Bank of St. Louis - 2009
interest rate (1 +it).8 The variable Wt is the economywide nominal
wage determined in a perfectly competitive labor market, and … wage bill to the workers and
9Here we consider optimal decisions in the anticipated utility framework �see Marcet and ….
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is the real marginal cost of production, which is a function of the real wage
and the opportunity cost of holding …