LEADER 04592oam 22010694 450 001 9910961915903321 005 20250426110711.0 010 $a9786612842566 010 $a9781462366880 010 $a1462366880 010 $a9781452759159 010 $a1452759154 010 $a9781282842564 010 $a1282842560 010 $a9781451871814 010 $a1451871813 035 $a(CKB)3170000000055132 035 $a(EBL)1608041 035 $a(SSID)ssj0001477964 035 $a(PQKBManifestationID)11902612 035 $a(PQKBTitleCode)TC0001477964 035 $a(PQKBWorkID)11453125 035 $a(PQKB)10641326 035 $a(OCoLC)469082295 035 $a(IMF)WPIEE2009034 035 $a(MiAaPQ)EBC1608041 035 $a(IMF)WPIEA2009034 035 $aWPIEA2009034 035 $a(EXLCZ)993170000000055132 100 $a20020129d2009 uf 0 101 0 $aeng 135 $aur|n|---||||| 181 $ctxt 182 $cc 183 $acr 200 14$aThe Inflation-Unemployment Trade-off at Low Inflation /$fLuca Ricci, Pierpaolo Benigno 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2009. 215 $a1 online resource (48 p.) 225 1 $aIMF Working Papers 300 $aDescription based upon print version of record. 311 08$a9781451916171 311 08$a1451916175 320 $aIncludes bibliographical references. 327 $aContents; 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 Constraint 330 3 $aWage setters take into account the future consequences of their current wage choices in the presence of downward nominal wage rigidities. Several interesting implications arise. First, a closed-form solution for a long-run Phillips curve relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes flatter as inflation declines. Second, macroeconomic volatility shifts the Phillips curve outward, implying that stabilization policies can play an important role in shaping the trade-off. Third, nominal wages tend to be endogenously rigid also upward, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of inflation decreases: this implies a long-run trade-off also between the volatility of unemployment and that of wage inflation. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2009/034 606 $aUnemployment$xEffect of inflation on 606 $aInflation (Finance) 606 $aDeflation$2imf 606 $aIncome economics$2imf 606 $aInflation$2imf 606 $aLabor$2imf 606 $aLabour$2imf 606 $aMacroeconomics$2imf 606 $aPrice Level$2imf 606 $aPrices$2imf 606 $aUnemployment rate$2imf 606 $aUnemployment$2imf 606 $aUnemployment: Models, Duration, Incidence, and Job Search$2imf 606 $aWage Differentials$2imf 606 $aWage Level and Structure$2imf 606 $aWage rigidity$2imf 606 $aWages$2imf 606 $aWages, Compensation, and Labor Costs: General$2imf 607 $aUnited States$2imf 615 0$aUnemployment$xEffect of inflation on. 615 0$aInflation (Finance) 615 7$aDeflation 615 7$aIncome economics 615 7$aInflation 615 7$aLabor 615 7$aLabour 615 7$aMacroeconomics 615 7$aPrice Level 615 7$aPrices 615 7$aUnemployment rate 615 7$aUnemployment 615 7$aUnemployment: Models, Duration, Incidence, and Job Search 615 7$aWage Differentials 615 7$aWage Level and Structure 615 7$aWage rigidity 615 7$aWages 615 7$aWages, Compensation, and Labor Costs: General 676 $a338.495 700 $aRicci$b Luca$01449348 701 $aBenigno$b Pierpaolo$0146810 801 0$bDcWaIMF 906 $aBOOK 912 $a9910961915903321 996 $aThe Inflation-Unemployment Trade-off at Low Inflation$94371560 997 $aUNINA