New Sights on Financial Policy, Inflation, and the Business Driving

The present paper provide an overview of recent evolutions in the analysis of monetary political in of presence about nominal rigidities. The paper emphasizes the life of several dimensions in which the recent literature provides a new perspective upon aforementioned linkages among monetary approach, inflation, and the work cycle. Itp is arguing that the approval of an explicitly optimizing, general equilibrium framework has not been superfluous; for the contrary, she has yielded many insights which, by their nature, could hardly have been obtained with earlier non-optimizing models.