Arbeitspapier
Real wage rigidities and the cost of disinflations: A comment on Blanchard and Galí
This paper analyzes the cost of disinflation under real wage rigidities in a micro-founded New Keynesian model. Unlike Blanchard and Galí (2007) who carried out a similar analysis in a linearized framework, we take non-linearities into account. We show that the results change dramatically, both qualitatively and quantitatively, for the steady states and for the dynamic adjustment paths. In particular, a disinflation implies a prolonged slump without any need for real wage rigidities.
- Language
-
Englisch
- Bibliographic citation
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Series: Quaderni di Dipartimento - EPMQ ; No. 191
- Classification
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Wirtschaft
Price Level; Inflation; Deflation
Monetary Policy, Central Banking, and the Supply of Money and Credit: General
- Subject
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Disinflation
Sticky Prices
Real Rigidities
Reallohn
Lohnrigidität
Arbeitslosigkeit
Geldpolitisches Ziel
Ungleichgewichtstheorie
New-Keynesian Phillips Curve
- Event
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Geistige Schöpfung
- (who)
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Ascari, Guido
Merkl, Christian
- Event
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Veröffentlichung
- (who)
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Università degli Studi di Pavia, Dipartimento di Economia Politica e Metodi Quantitativi (EPMQ)
- (where)
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Pavia
- (when)
-
2007
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Ascari, Guido
- Merkl, Christian
- Università degli Studi di Pavia, Dipartimento di Economia Politica e Metodi Quantitativi (EPMQ)
Time of origin
- 2007
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