Tavani, Daniele; Flaschel, Peter; Taylor, Lance - Bernard Schwartz Center for Economic Policy Analysis … - 2010
We introduce the results of a non-parametric estimate of the US wage Phillips Curve into a simplified version of the model of the wage-price spiral by Flaschel and Krolzig (2008). Making use of Okun’s law, the non-linearity in the wage inflation-employment relation translates into a...