@techreport{Ascari2007Real,
abstract = {This paper analyzes the cost of disinflation under real wage rigidities in a micro-founded New Keynesian model. Unlike Blanchard and Gal\'{\i} (2007) who carried out a similar analysis in a linearized framework, we take non- linearities into account. We show that the results change dramatically, both qualitatively and quantitatively, for the steady states and for the dynamic adjustment paths. In particular, a disinflation implies a prolonged slump without any need for real wage rigidities.},
address = {Kiel},
author = {Guido Ascari and Christian Merkl},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
editor = {Institut f\"{u}r Weltwirtschaft, Kiel},
keywords = {E52; E31; 330; Disinflation; Sticky Prices; Real Rigidities; Reallohn; Lohnrigidit\"{a}t; Arbeitslosigkeit; Geldpolitisches Ziel; Ungleichgewichtstheorie; New-Keynesian Phillips Curve},
language = {eng},
number = {1312; 1312},
publisher = {Kiel Institute for the World Economy (IfW)},
series = {Kiel working paper},
title = {Real wage rigidities and the cost of disinflations: A comment on Blanchard and Gal\'{\i}},
type = {Kieler Arbeitspapiere},
url = {http://hdl.handle.net/10419/3956},
year = {2007}
}
