Rudebusch, Glenn D. (contributor); Wu, Tao (contributor) - 2003 - [Elektronische Ressource]
specification is its theoretical
foundation in a dynamic general equilibrium theory with temporary nominal rigidities; however,
we … (4.5). Given the
institutional length of price contracts in the real world, the one-period leads and lags in theory
are … percent at an annual rate (i.e., π
t
≡ 12(p
t
−p
t−1
),wherep
t
=100lnP
t
).
14
The standard New Keynesian theory of …