The elusive persistence: Wage and price rigidities, the Phillips curve, and inflation dynamics

We review the main New Keynesian inflation equations that have arisen as a result of aggregation from individual firms' price rigidities. We find that, on the whole, they cannot account for inflation persistence, a key feature of the empirical dynamics of inflation, and with important policy implications. The only exception seems to be when price stickiness is combined with wage rigidity and staggering.

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Year of publication:	2007
Authors:	Tsoukis, Chris ; Kapetanios, George ; Pearlman, Joseph
Publisher:	London : Queen Mary University of London, Department of Economics
Subject:	PreisrigiditÃƒÂ¤t \| LohnrigiditÃƒÂ¤t \| Inflation \| VolatilitÃƒÂ¤t \| New-Keynesian Phillips Curve \| Theorie \| Inflation rigidity \| Price stickiness \| Phillips curve

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Series:	Working Paper ; 619
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	548434093 [GVK] hdl:10419/62929 [Handle]
Classification:	E31 - Price Level; Inflation; Deflation ; E32 - Business Fluctuations; Cycles
Source:	EconStor

Persistent link: https://www.econbiz.de/10010284218