Verfügbarkeit: The Inflation-Unemployment Trade-Off At Low Inflation

The Inflation-Unemployment Trade-Off At Low Inflation:

Wage setters take into account the future consequences of their current wage choices in the presence of downward nominal wage rigidities. Several interesting implications arise. First, a closed-form solution for a long-run Phillips curve relates average unemployment to average wage inflation; the cu...

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1. Verfasser:	Ricci, Luca Antonio (VerfasserIn)
Format:	Elektronisch E-Book
Sprache:	English
Veröffentlicht:	Washington, D.C International Monetary Fund 2009
Schriftenreihe:	IMF Working Papers Working Paper No. 09/34
Online-Zugang:	UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext
Zusammenfassung:	Wage setters take into account the future consequences of their current wage choices in the presence of downward nominal wage rigidities. Several interesting implications arise. First, a closed-form solution for a long-run Phillips curve relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes flatter as inflation declines. Second, macroeconomic volatility shifts the Phillips curve outward, implying that stabilization policies can play an important role in shaping the trade-off. Third, nominal wages tend to be endogenously rigid also upward, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of inflation decreases: this implies a long-run trade-off also between the volatility of unemployment and that of wage inflation
Beschreibung:	1 Online-Ressource (46 p)
ISBN:	1451871813 9781451871814

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spelling	Ricci, Luca Antonio Verfasser aut The Inflation-Unemployment Trade-Off At Low Inflation Ricci, Luca Antonio Washington, D.C International Monetary Fund 2009 1 Online-Ressource (46 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 09/34 Wage setters take into account the future consequences of their current wage choices in the presence of downward nominal wage rigidities. Several interesting implications arise. First, a closed-form solution for a long-run Phillips curve relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes flatter as inflation declines. Second, macroeconomic volatility shifts the Phillips curve outward, implying that stabilization policies can play an important role in shaping the trade-off. Third, nominal wages tend to be endogenously rigid also upward, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of inflation decreases: this implies a long-run trade-off also between the volatility of unemployment and that of wage inflation Online-Ausg Benigno, Pierpaolo Sonstige oth http://elibrary.imf.org/view/IMF001/09631-9781451871814/09631-9781451871814/09631-9781451871814.xml Verlag URL des Erstveröffentlichers Volltext
spellingShingle	Ricci, Luca Antonio The Inflation-Unemployment Trade-Off At Low Inflation
title	The Inflation-Unemployment Trade-Off At Low Inflation
title_auth	The Inflation-Unemployment Trade-Off At Low Inflation
title_exact_search	The Inflation-Unemployment Trade-Off At Low Inflation
title_exact_search_txtP	The Inflation-Unemployment Trade-Off At Low Inflation
title_full	The Inflation-Unemployment Trade-Off At Low Inflation Ricci, Luca Antonio
title_fullStr	The Inflation-Unemployment Trade-Off At Low Inflation Ricci, Luca Antonio
title_full_unstemmed	The Inflation-Unemployment Trade-Off At Low Inflation Ricci, Luca Antonio
title_short	The Inflation-Unemployment Trade-Off At Low Inflation
title_sort	the inflation unemployment trade off at low inflation
url	http://elibrary.imf.org/view/IMF001/09631-9781451871814/09631-9781451871814/09631-9781451871814.xml
work_keys_str_mv	AT riccilucaantonio theinflationunemploymenttradeoffatlowinflation AT benignopierpaolo theinflationunemploymenttradeoffatlowinflation

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