Arbeitspapier
Return of the Long-Run Phillips Curve
This paper integrate microfoundations of wage staggering into a simple dynamic general equilibrium model with rational expectations. In this context we show that a permanent increase in money growth leads to a permanent increase in the rate of inflation and a permanent reduction in the level of unemployment. In short, we derive a microfounded long-run downward-sloping Phillips curve.
Schlagworte
- monetary policy
- Phillips-Kurve