Real Wage Rigidities and the Cost of Disinflations

This paper analyzes the cost of disinflations under real wage rigidities in a micro-founded New Keynesian model. The conventional view is that real wage rigidities can be a useful mechanism to generate a slump in output after a credible disinflationary policy because they prevent the immediate adjus...

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Bibliographic details
Volume:	41
Main Author:	Guido Ascari Christian Merkl
Format:	Journal Article
Language:	English
Zielgruppe:	Academic
Place of publication:	Malden, USA Wiley Subscription Services 01.03.2009 Blackwell Publishing Inc WILEY-BLACKWELL PUBLISHING, INC Wiley Periodicals, Inc
published in:	Journal of money, credit and banking Vol. 41; no. 2/3; pp. 417 - 435
Data of publication:	20090301
ISSN:	0022-2879 1538-4616
EISSN:	1538-4616
Discipline:	Economics Business
Bibliography:	We would like to thank Jean‐Pascal Bénassy, Jordi Galí, Paul J. Kramer, Tiziano Ropele, Leo von Thadden, Roland Winkler, the participants of the IfW Symposium on “The Phillips Curve and the Natural Rate of Unemployment,” the Bundesbank‐IWH workshop on “Monetary and Financial Economics,” the Annual Meeting of the German Economic Association, and the European Meeting of the Econometric Society, and two anonymous referees for very helpful comments.
Subjects:	Steady state economies Wage adjustments Inflation shocks Keynesianism Real rigidities Real wages Shorter Papers, Discussions, and Letters Inflation rates Nominal rigidities Disinflation Zero inflation rate E50 E31 disinflation sticky prices real wage rigidities nonlinearities Economics Business & Economics Social Sciences Business, Finance Recessions United States Deflation (Finance) Analysis Stochastic processes Keynesian economics Influence United States E50 E31 MONEY PRICES sticky prices real wage rigidities KEYNESIAN MODEL nonlinearities MONETARY disinflation
Online Access:	Fulltext
Database:	Social Sciences Citation Index Web of Science - Social Sciences Citation Index - 2009 Web of Knowledge Web of Science CrossRef Database information Databases - DBIS