04373oam 22009734 450 991078834400332120230721045633.01-4623-6688-01-4527-5915-41-282-84256-01-4518-7181-39786612842566(CKB)3170000000055132(EBL)1608041(SSID)ssj0001477964(PQKBManifestationID)11902612(PQKBTitleCode)TC0001477964(PQKBWorkID)11453125(PQKB)10641326(OCoLC)469082295(MiAaPQ)EBC1608041(IMF)WPIEE2009034(EXLCZ)99317000000005513220020129d2009 uf 0engur|n|---|||||txtccrThe Inflation-Unemployment Trade-off at Low Inflation /Luca Ricci, Pierpaolo BenignoWashington, D.C. :International Monetary Fund,2009.1 online resource (48 p.)IMF Working PapersDescription based upon print version of record.1-4519-1617-5 Includes bibliographical references.Contents; 1. Introduction; 2. Overview of the Literature on Downward Wage Rigidities; 3. The Model; 4. Flexible Wages; 5. Downward Nominal Wage Rigidity; Figures; Figure 1; 6. The Phillips Curve; 6.1. Long-run Phillips Curve; Figure 2; Table 1; 6.2. Short-run Phillips Curve; 6.3. Varying the Degree of Downward Rigidities; Figure 3; Figure 4; 7. Implications for Long-run Inflation and Unemployment Volatilities; Figure 5; Figure 6; Figure 7; Figure 8; 8. Conclusions; References; A. Appendix; A.1 Derivation of Conditions; A.2 Adding the Employment ConstraintWage 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 curve is virtually vertical for high inflation rates but becomes flatter as inflation declines. Second, macroeconomic volatility shifts the Phillips curve outward, implying that stabilization policies can play an important role in shaping the trade-off. Third, nominal wages tend to be endogenously rigid also upward, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of inflation decreases: this implies a long-run trade-off also between the volatility of unemployment and that of wage inflation.IMF Working Papers; Working Paper ;No. 2009/034UnemploymentEffect of inflation onInflation (Finance)InflationimfLaborimfPrice LevelimfDeflationimfWages, Compensation, and Labor Costs: GeneralimfUnemployment: Models, Duration, Incidence, and Job SearchimfWage Level and StructureimfWage DifferentialsimfLabourimfincome economicsimfMacroeconomicsimfWagesimfWage rigidityimfUnemploymentimfUnemployment rateimfPricesimfUnited StatesimfUnemploymentEffect of inflation on.Inflation (Finance)InflationLaborPrice LevelDeflationWages, Compensation, and Labor Costs: GeneralUnemployment: Models, Duration, Incidence, and Job SearchWage Level and StructureWage DifferentialsLabourincome economicsMacroeconomicsWagesWage rigidityUnemploymentUnemployment ratePrices338.495Ricci Luca1449348Benigno Pierpaolo146810DcWaIMFBOOK9910788344003321The Inflation-Unemployment Trade-off at Low Inflation3716491UNINA