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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/2910| Title: | An anatomy of the Phillips curve |
| Authors: | forward- and backward-looking wage-price behavior |
| Keywords: | J3 E2 E3 E5 ddc:330 inflation-unemployment tradeoff wage-price staggering monetary policy forward- and backward-looking wage-price behavior traditional and New Phillips curve Phillips-Kurve Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Istitut zur Zukunft der Arbeit Bonn |
| Description: | The paper examines how the long-run inflation-unemployment tradeoff depends on the degree to which wage-price decisions are backward- versus forward-looking. When economic agents, facing time-contingent, staggered nominal contracts, have a positive rate of time preference, the current wage and price levels depend more heavily on past variables (e.g. past wages and prices) than on future variables. Consequently, the long-run Phillips curve becomes downward-sloping and, indeed, quit flat for plausible parameter values. This paper provides an intuitive account of how this long-run Phillips curve arises. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/2910 |
| Other Identifiers: | http://hdl.handle.net/10419/2910 ppn:360642497 ppn:360642497 |
| Appears in Collections: | EconStor |
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