1221-1263; Alvarez, F. et al. (2011), “From hyperinflation to stable prices: Argentina’s evidence on menu cost models”, The Quarterly Journal of Economics, Vol. 134, No 1, pp. 451-505. 10. The simulations are based on Woodford (2009), op. cit., and Costain, J., Nakov, A., (2019), “Logit price dynamics”, Journal of Money, Credit, and Banking, 51, 43-78.
Overall employment and incomes would have fallen even further were it not for the offsetting performance of exporting firms despite the much weaker international environment even than was expected two years ago.