|
for New Keynesian Economics |
| No answer links are provided for this section: these are straightfoward questions from the transparency notes. |
| 1. Why was the Fischer model of wage contracting an unsatisfactory explanation for how monetary policy affects output? |
| 2. Explain Mankiw's menu cost theory of price rigidity. |
| 3. What evidence has been brought to bear on the empirical relevance of Mankiw's theory? |