… We introduce endogenous growth in a standard NK model with staggered prices and
wages. We find that the source of nominal rigidities, the shock persistence and the type of
Taylor rule affect the relationship between monetary volatility and growth. … To better
understand the interaction between nominal rigidities, monetary shocks volatility and
monetary policy rules, we consider three different Taylor rules: (i) a strict inflation targeting
rule; (ii) a rule targeting both price inflation and wage inflation; (iii) a rule targeting price …