stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …

many wage setters is feasible. A strict monetary regime, like a country-specific inflation target, to some extent …

. Therefore, in periods with inflation generous tax depreciation provisions do not adequately promote private investment as … designed, but partly compensate such losses caused by inflation. …

case of prevailing inflation, there is a mismatch between the nominal interest rate that is a discounting factor for all …

This paper reviews the literature on the effects of low steady-state inflation on wage formation, focusing on four … different effects. First, under low inflation, downward nominal wage rigidity (DNWR) may prevent real wage cuts that would have … happened had inflation been higher. Second, wages (and prices) are given in nominal contracts, and inflation affects both how …

legislation, high union density, centralised wage setting and high inflation. -- Wage inflation ; downward nominal wage rigidity …

inflation indexation into its personal income tax system in order to re-duce distortions of tax liabilities and additional tax … extent to which the previous reform efforts, made in this country since 1958, have led to the change of the real, inflation …, when the 'hidden' distortion caused by inflation prevails. According to the long-term real view adopted in this study, the …