Dew-Becker, Ian; Gordon, Robert J. - In: Brookings Papers on Economic Activity 36 (2005) 2, pp. 67-150
Starting from the standard Gordon inflation model, which explains price changes by inertia, demand shocks, and supply … productivity growth on inflation, nominal wages, and labor’s income share. In dynamic simulations, changes in the productivity … growth trend strongly boosted inflation during 1965-79 and slowed it between 1995 and 2005. The paper’s second part links the …