03266nam 2200613Ia 450 991081213160332120200520144314.01-4623-6688-01-4527-5915-41-282-84256-01-4518-7181-39786612842566(CKB)3170000000055132(EBL)1608041(SSID)ssj0001477964(PQKBManifestationID)11902612(PQKBTitleCode)TC0001477964(PQKBWorkID)11453125(PQKB)10641326(OCoLC)469082295(IMF)WPIEE2009034(MiAaPQ)EBC1608041(EXLCZ)99317000000005513220041202d2009 uf 0engur|n|---|||||txtccrThe inflation-unemployment trade-off at low inflation /prepared by Pierpaolo Benigno and Luca Antonio Ricci1st ed.[Washington D.C.] International Monetary Fund20091 online resource (48 p.)IMF working paper ;WP/09/34Description 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 paper ;WP/09/34.UnemploymentEffect of inflation onInflation (Finance)UnemploymentEffect of inflation on.Inflation (Finance)338.495Benigno Pierpaolo146810Ricci Luca Antonio1751991MiAaPQMiAaPQMiAaPQBOOK9910812131603321The inflation-unemployment trade-off at low inflation4189651UNINA