Fuhrer, Jeffrey C.; Olivei, Giovanni P.; Tootell, … - 2011
evidence on downward nominal wage rigidity. Our findings question the view that stable long-run inflation expectations and … downward nominal wage rigidity will provide sufficient support to prices such that deflation can be avoided. We show that an … notwithstanding. As a consequence, downward nominal wage rigidity may provide little offset to deflationary pressures in the current U …