Construct · 1 fields · 1 citations

divine coincidence: a standalone construct

One name. One construct. A landmark on the map.

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divinecoincidence1 CONSTRUCTDivine coincidenceBLANCHARD · MONETARY ECONOMICS

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Monetary economics

the property of the basic New Keynesian model that stabilizing inflation also stabilizes the welfare-relevant output gap, which real wage rigidities break.

In monetary economics, divine coincidence refers to the property of the basic New Keynesian model that stabilizing inflation also stabilizes the welfare-relevant output gap, which real wage rigidities break. This meaning comes from Blanchard (2007) in Journal of Money, Credit and Banking.[1]

Unit
Recovery means
Measured by

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References

  1. Blanchard, O., & Galí, J. (2007). Real Wage Rigidities and the New Keynesian Model. Journal of Money, Credit and Banking, 39(s1), 35-65. https://doi.org/10.1111/j.1538-4616.2007.00015.x

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