American Economic Review· 2016Q1
Staggered Wage Setting in a Macro Model
- 961citations
- Q1SCImago
- 2016year
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.
AI-generated from the title and abstract; the full text is not read.
Key points
- Introduces a macroeconomic model with staggered wage setting.
- Demonstrates that staggered wage setting can lead to persistent inflation.
- Shows inflation persistence is possible even with a vertical long-run Phillips curve.
- Challenges simpler models of inflation dynamics.
AI-generated from the title and abstract; the full text is not read.
Abstract
Few economists now question the validity of the Friedman-Phelps accelerationist hypothesis that the Phillips curve is vertical in the long run-at least as a first-order approximation. Indeed. the once controversial hvpothesis is now embodied in basic textboik
The authors' abstract, as published at the source. American Economic Review, 2016 · DOI ↗
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Field: General Economics, Econometrics and Finance
General Economics, Econometrics and FinanceEconomics, Econometrics and Finance