Open-Economy-Macro

Published Journal of Political Economy Online 1 May 2025 Published Feb 2026

Trade with Nominal Rigidities: Understanding the Unemployment and Welfare Effects

Andres Rodriguez-Clare · Mauricio Ulate · Jose P. Vasquez

Standard international trade models assume perfectly flexible prices and full employment. This paper introduces nominal rigidities (downward wage rigidity) into a quantitative trade model and asks how …

Monetary Policy Transmission Open Economy Macro Free Read ↗

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