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Staggered wages and output dynamics under disinflation

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Staggered Wages and Output Dynamics Under Disinflation

Ascari, Guido; Rankin, Neil - 2002

We study the output costs of a reduction in monetary growth in a dynamic general equilibrium model with staggered wages. The money wage is fixed for two periods, and is chosen according to intertemporal optimisation. Agents have labour market monopoly power. We show that the introduction of...

Persistent link: https://www.econbiz.de/10014125162