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American Economic Review· 2016Q1

Staggered Wage Setting in a Macro Model

John B. Taylor

Short summary

A new macro model demonstrates that staggered wage setting, where wages are reset at different times, can lead to persistent inflation even when the long-run Phillips curve is vertical.

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Field: General Economics, Econometrics and Finance

General Economics, Econometrics and FinanceEconomics, Econometrics and Finance