Real wage rigidity is known to create a substantial trade-off between inflation and employment stabilization for … active monetary policy even if wages are rigid. Importantly, this contrasts with the implications of combining real wage … rigidity and decreasing returns to scale for other policy instruments. …

Real wage rigidity is known to create a substantial trade-off between inflation and employment stabilization for … active monetary policy even if wages are rigid. Importantly, this contrasts with the implications of combining real wage … rigidity and decreasing returns to scale for other policy instruments. …

Recent dynamic contracting models of downward real wage rigidity with "equal treatment" – newly hired workers cannot …

Recent dynamic contracting models of downward real wage rigidity with "equal treatment" - newly hired workers cannot …

measure of downward real wage rigidity (DRWR) of 12.09%, four times bigger than their aggregate estimate for the OECD …

measure of downward real wage rigidity (DRWR) of 12.09%, four times bigger than their aggregate estimate for the OECD …

The paper studies the effects of credible disinflation in the presence of real wage rigidity, comparing the Calvo and … novel and owes to negative real wage growth along the transition path, whose effect is amplified by the degree of real wage … rigidity. …