may raise the variance of inflation rates. In social optimum wages are fully indexed to the price level, but this requires …It is an open question whether and how indexed wage contracts reduce welfare or raise average inflation. This paper … analyzes the impact of indexed wage contracts on inflation and social welfare in a Barro Gordon model with discretionary …

response to aggregate shocks and monetary policy. We show that workers index wages to past inflation when output fluctuations … inflation, a finding that is at odds with the assumption of constant indexation parameters in most New-Keynesian DSGE models. We … are primarily explained by technology and permanent inflation-target shocks, whereas they index to trend inflation when …

linked to the monetary policy regime. Before and after the "Great Inflation", nominal wages moved in the same direction as … the (required) adjustment of real wages, and in the opposite direction of the price response. During the "Great Inflation … as well as real and nominal wages. The results indicate considerable time variation in U.S. wage dynamics that can be …

The Fiscal Theory of the Price Level (FTPL) rejects the fundamental 'Ricardian' proposition, that the government budget …

and wages. We further measure the relative importance of different types of shocks on inflation across countries over time …We estimate a multi-country multi-sector New Keynesian model to quantify the drivers of domestic inflation during 2020 …–2023 in several countries, including the United States. The model matches observed inflation together with sector-level prices …

natives' wages, and that skilled immigration can actually increase them. We develop a model with regional labor markets and … is halved when the across-firm and across-region reallocation mechanisms are at work. Finally, both theory and … but skill-biased on aggregate, skilled immigration can increase absolute and relative skilled wages. Therefore, firm …