Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10419/4082| Title: | Monetary persistence, imperfect competition, and staggering complementarities |
| Keywords: | ddc:330 Geldpolitik Schock Hysteresis Ungleichgewichtstheorie Arbeitsmobilität Kosten Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Forschungsinstitut zur Zukunft der Arbeit, Bonn |
| Description: | This paper explores the influence of wage and price staggering on monetary persistence. We show that, for plausible parameter values, wage and price staggering are complementary in generating monetary persistence. We do so by proposing the new measure of quantitative inertia, after discussing weaknesses of the contract multiplier, a standard measure of monetary persistence. The existence of complementarities means that beyond understanding how wage and price staggering work in isolation, it is important to investigate their interactions. Furthermore, our analysis indicates that the degree of monetary persistence generated by wage vis-à-vis price staggering depends on the relative competitiveness of the labor and product markets. We show that the conventional finding that wage staggering generates more persistence than price staggering holds under homogenous capital accumulation. Under firm-specific capital, wage staggering generates more persistence only when the labor market is sufficiently competitive relative to the product market. -- Monetary persistence ; price staggering ; wage staggering ; firm-specific capital |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/4082 |
| Other Identifiers: | IZA discussion papers Forschungsinstitut zur Zukunft der Arbeit, Bonn 3033 http://hdl.handle.net/10419/4082 ppn:547657633 |
| Appears in Collections: | EconStor |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.