04592oam 22010694 450 991096191590332120250426110711.0978661284256697814623668801462366880978145275915914527591549781282842564128284256097814518718141451871813(CKB)3170000000055132(EBL)1608041(SSID)ssj0001477964(PQKBManifestationID)11902612(PQKBTitleCode)TC0001477964(PQKBWorkID)11453125(PQKB)10641326(OCoLC)469082295(IMF)WPIEE2009034(MiAaPQ)EBC1608041(IMF)WPIEA2009034WPIEA2009034(EXLCZ)99317000000005513220020129d2009 uf 0engur|n|---|||||txtccrThe Inflation-Unemployment Trade-off at Low Inflation /Luca Ricci, Pierpaolo Benigno1st ed.Washington, D.C. :International Monetary Fund,2009.1 online resource (48 p.)IMF Working PapersDescription based upon print version of record.9781451916171 1451916175 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)DeflationimfIncome economicsimfInflationimfLaborimfLabourimfMacroeconomicsimfPrice LevelimfPricesimfUnemployment rateimfUnemploymentimfUnemployment: Models, Duration, Incidence, and Job SearchimfWage DifferentialsimfWage Level and StructureimfWage rigidityimfWagesimfWages, Compensation, and Labor Costs: GeneralimfUnited StatesimfUnemploymentEffect of inflation on.Inflation (Finance)DeflationIncome economicsInflationLaborLabourMacroeconomicsPrice LevelPricesUnemployment rateUnemploymentUnemployment: Models, Duration, Incidence, and Job SearchWage DifferentialsWage Level and StructureWage rigidityWagesWages, Compensation, and Labor Costs: General338.495Ricci Luca1449348Benigno Pierpaolo146810DcWaIMFBOOK9910961915903321The Inflation-Unemployment Trade-off at Low Inflation4371560UNINA