Fleischman, Charles A. - Federal Reserve Board (Board of Governors of the … - 1999
A model's ability to explain procyclical movements in real wages has become an important benchmark by which … macroeconomists judge business cycle theories. Because Keynesian models with sticky nominal wages predict countercyclical real wages … stickiness or countercyclical markups. The bulk of the evidence for procyclical real wages, however, comes from studies using …