Endogenous Growth, Downward Wage Rigidities and Optimal Inflation /

Standard New Keynesian (NK) models feature an optimal inflation target well below two percent, limited welfare losses from business cycle fluctuations and long-term monetary neutrality. We develop a NK framework with labour market frictions, endogenous productivity and downward wage rigidity (DWR) w...

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Bibliographic Details
Main Author: Abbritti, Mirko
Other Authors: Consolo, Agostino, Weber, Sebastian
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2021.
Series:IMF Working Papers; Working Paper ; No. 2021/208
Subjects:
Online Access:Full text available on IMF