Real wage rigidities and disinflation dynamics: Calvo vs. Rotemberg pricing
Calvo pricing implies output gains, while Rotemberg pricing implies output losses after a disinflation. Introducing real wage rigidities has opposite effects: it generates a long-lasting boom in output in Calvo, and a moderate output slump in Rotemberg.
Year of publication: |
2011
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Authors: | Ascari, Guido ; Rossi, Lorenza |
Published in: |
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 110.2011, 2, p. 126-131
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Publisher: |
Elsevier |
Keywords: | Disinflation Sticky prices Real wage rigidity Non-linear simulations |
Saved in:
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