Hyperbolic discounting and the Phillips curve

Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with hyperbolic discounting leads to inflation having significant long-run effects on real variables.

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Year of publication:	2008
Authors:	Graham, Liam ; Snower, Dennis J.
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Phillips-Kurve \| Lohnrigidität \| Dynamisches Gleichgewicht \| Geldpolitik \| Theorie \| Inflation \| unemployment \| Phillips curve \| nominal inertia \| monetary policy \| dynamic general equilibrium

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Series:	IZA Discussion Papers ; 3477
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	566049708 [GVK] hdl:10419/35273 [Handle]
Classification:	E20 - Consumption, Saving, Production, Employment, and Investment. General
Source:	EconStor

Persistent link: https://www.econbiz.de/10010278020