Calvo vs. Rotemberg in a Trend Inflation World - Wiwi Uni-Frankfurt
Calvo vs. Rotemberg in a Trend Inflation World - Wiwi Uni-Frankfurt
Calvo vs. Rotemberg in a Trend Inflation World - Wiwi Uni-Frankfurt
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α Y<br />
5<br />
4<br />
3<br />
2<br />
1<br />
<strong>Rotemberg</strong> <strong>vs</strong>. <strong>Calvo</strong> Pric<strong>in</strong>g Determ<strong>in</strong>acy Regions (μ = 1)<br />
<strong>Rotemberg</strong><br />
(χ=0.38)<br />
Basel<strong>in</strong>e<br />
(χ=1)<br />
0<br />
0.5 1 1.5 2<br />
α π<br />
<strong>Calvo</strong><br />
(χ=0)<br />
Figure 3: Determ<strong>in</strong>acy under di¤erent frameworks. Determ<strong>in</strong>ary regions lie at<br />
the right of the model-consistent boundaries.<br />
34
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