Effect of sticky Wages on the Behavior of Economic Agents with Heterogeneous Expectations

The aim of the work is to analyze changes and behavioral features economic agents when wage rigidity incorporated into new Keynesian model in comparison with flexible wages rigid prices under cognitive constraints agents. relevance lies fact that study able describe typical movement a real business cycle. working hypothesis an assumption forecasting output gap, inflation occurs help fundamentalist extrapolation rules. first rule based on prediction studied variables their stationary values. second latest available data for study. weight shares applying these heuristic rules change endogenously, which source endogenous waves optimism pessimism, scientific novelty analysis models imperfect labor market. An impulse responses interest rate shock technological suggests more economy (an prices) less prone abrupt cycle caused by pessimism than economy. These shocks cause ripple effects economy, meaning tight will be booms busts driven alternating agile It concluded difference between degree base model, as well prices, full trust Central Bank targeting absence stabilization this bank. practical significance results obtained may useful stabilizing considered monetary policy Bank.