Ascari, Guido (contributor); Merkl, Christian (contributor) - 2007
This paper analyzes the cost of disinflation under real wage rigidities in a micro-founded New Keynesian model. Unlike … adjustment paths. In particular, a disinflation implies a prolonged slump without any need for real wage rigidities …. -- Disinflation ; Sticky Prices ; Real Rigidities …