Damjanovic, Tatiana (contributor); … - 2008
holdings, 1+Rt denotes the nominal interest rate on this �riskless�one-period
nominal asset, wt denotes the real wage in period … t (all agents supply the same
labour to each �rm, and �rms pay the same real wage to labour), and t is a lump
sum …, it follows from (2.6)
that the equilibrium wage can be written as
wt = (1 +T + ik) tCt vt
Y
t
At
v
: (2.18)
6
2 …