Downward Nominal Wage Rigidities Bend the Phillips Curve | E-Axes
 

Search
Login
Username:
Password:
Not a member yet? Click here.
Forgot your Password?
Archives - Categories
Home
On Inequality
On the Eurozone Debt Crisis
On Monetary Policy and Central Banking
On Global Economic Growth
On the Greek Debt Crisis
On the Banking and Financial Sectors
On Brexit
On China
On India
On Global Inflation
On Currencies
On the US Debt
On the "Economics" of the Arab Spring
Blogs
Working Papers
Books
Books suggested by members



Downward Nominal Wage Rigidities Bend the Phillips Curve

Authors: Mary C. Daly, Bart Hobijn

Date: January 2014

Abstract

We introduce a model of monetary policy with downward nominal wage rigidities and show that both the slope and curvature of the Phillips curve depend on the level of inflation and the extent of downward nominal wage rigidities. This is true for the both the long-run and the short-run Phillips curve. Comparing simulation results from the model with data on U.S. wage patterns, we show that downward nominal wage rigidities likely have played a role in shaping the dynamics of unemployment and wage growth during the last three recessions and subsequent recoveries.

Download 


© 2011–2017 e-axes. All rights reserved. | Credits | Contact Us | Privacy Statement | Tue 16 Jan, 2018 11:37:28 AM
e-axes is proudly powered by Norder - Creative Solutions