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Optimal monetary policy with endogenous entry and product variety

Bilbiie, Florin O; Fujiwara, Ippei; Ghironi, Fabio


Deviations from long-run price stability are optimal in the presence of endogenous entry and product variety in a sticky-price model in which price stability would be optimal otherwise Long-run inflation (deflation) is optimal when the benefit of variety

CollectionsANU Research Publications
Date published: 2014
Type: Journal article
Source: Journal of Monetary Economics
DOI: 10.1016/j.jmoneco.2014.02.006


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