The possibility of co-movements in the cyclical variations of aggregate output in different countries has received increasing attention in recent years. The present paper derives sufficient conditions for the occurrence of persistent co-movements in the mean processes of aggregate economic...

We present a dynamic model of price setting in which price adjustments are costly for the monopolist. The general price level changes endogenously due to welfare changes. For the resulting two-dimensional dynamical system the existence of a continuum of stationary points is proven. Furthermore,...