contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high … incomes experience guilt. The former seek to raise their income, and latter seek to reduce it. The greater the inflation rate …, a rise in the inflation rate leads workers to supply more labor over the contract period, generating a significant …

Keynesian model we show that, if households have hyperbolic discounting, small positive rates of inflation can be optimal. In … our baseline calibration, the optimal rate of inflation is 2.1% and remains positive across a wide range of calibrations …. -- optimal monetary policy ; inflation targeting ; unemployment ; Phillips curve ; nominal inertia ; monetary policy …

consensus is that real wage rigidities can be a useful mechanism to induce the inflation persistence that is absent in the … account, the results change dramatically, both qualitatively and quantitatively. Real wage rigidities imply neither inflation … inflation target of the monetary policy. -- Disinflation ; sticky prices ; real wage rigidities ; nonlinearities …

hyperbolic discounting leads to inflation having significant long-run effects on real variables. -- Inflation ; unemployment …

they argue for or against mandatory participation? Should we have less redistribution and more actuarial fairness? How does … this depend on the type of redistribution involved? -- redistribution ; fairness ; pension ; insurance ; experiment …

period. The workers' bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence … cost determination. This set-up produces realistic labor market statistics together with inflation persistence …

How costly is inflation to workers? Answers to this question have focused on the path of real wages during inflationary … periods. We argue that workers must take costly actions ("conflict") to have nominal wages catch up with inflation, meaning … there are welfare costs even if real wages do not fall as inflation rises. We study a menu-cost style model, where workers …