By introducing Jaimovich-Rebelo (JR) consumption-labor non-separable preferences into an otherwise standard New Keynesian model, we show that the occurrence of positive co-movement between inflation and the nominal interest rate conditional on a nominal shock - the so-called neo-Fisherian...

By introducing Jaimovich-Rebelo (JR) consumption-labor nonseparable preferences into an otherwise standard New Keynesian model, we show that the occurrence of positive comovement between inflation and the nominal interest rate conditional on a nominal shock - the so-called neo-Fisherian...