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κ>κu.Theeffectofinflationexpectations,however,isnotclear-cut.Itdependsonhowvenmorenallytheison3.1HouseholdsnbutU(Ct,Ft,χt,Yt,ξt)=(Ct−χt\0Ftfωdf+Yt)1−σξtwhereCtisconsumptionandFtisthenumberofmemberswhodecidetoparticipateinthelabormarket.Eachhouseholdmemberisindexedbyfandhasfixeddisutility...