All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to …

degree of wage rigidity makes monetary policy more effective, i.e. a monetary policy shock transmits faster onto inflation … fluctuations. Our results point primarily towards disturbances in the bargaining process as a significant contributor to inflation …

wages and labor market shocks feed into the inflation process and derive monetary policy implications. Towards that aim, we …