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Title:Optimal inflation, average markups and asymmetric sticky prices Author(s):PACZOS, Wojtek
Date:2016Type:Working PaperSeries/Number:EUI ECO; 2016/03Abstract:In state-of-the-art New Keynesian model firms are monopolistically competitive and prices are sticky. However, the average markup resulting from the monopolistic competition is usually assumed away either by production ...
