employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

- although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … asserted that, in the context of the new Phillips curve (NPC), inflation is a jump variable. We argue that this persistency … setting (in which real variables not only affect inflation, but are also influenced by it), standard wage-price staggering …

inflation (sunspot shocks) affecting nominal wage bargaining. Since the estimated parameters fall near the locus of Hopf … bifurcations, country-specific expected inflation shocks can replicate the strong persistence and heterogeneity observed in … fact that liquidity constrained workers, facing earnings uncertainty in the context of imperfect unemployment insurance …

inflation (sunspot shocks) affecting nominal wage bargaining. Since the estimated parameters fall near the locus of Hopf … bifurcations, country-specific expected inflation shocks can replicate the strong persistence and heterogeneity observed in … fact that liquidity constrained workers, facing earnings uncertainty in the context of imperfect unemployment insurance …

nominal wages by less than the inflation rate, but seldom cut nominal wages, in contrast to the predictions of the standard … individual needs to compare the inflation rate to the wage change before it becomes clear whether the change increases or … wage achieved through increasing the nominal wage by less than the inflation rate. Although emotions may benefit individual …

and increases with monetary uncertainty. …