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Keywords: Flexible prices
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Journal Articles
Journal:
Journal of Economic Studies
Journal of Economic Studies (2020) 48 (1): 167–190.
Published: 26 June 2020
... taxes on income and consumption calls for a high inflation rate that is extremely volatile, despite the fact that changing prices is costly. Practical implications The optimality of zero nominal interest rate under flexible prices in monetary models is not mainly the case and quite depends...
