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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Bibliographic Details
Main Author: Ricci, Luca
Other Authors: Benigno, Pierpaolo
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2009.
Series:IMF Working Papers; Working Paper ; No. 2009/034
Online Access:Full text available on IMF