Daniels, Joseph; Nourzad, Farrokh; VanHoose, David D. - 2006
their collective actions influence the equilibrium inflation outcome in an environment in which the central bank engages in … initially causes inflation to increase at low degrees of wage centralization but then, as wage centralization increases, results … in an inflation drop-off; (2) a greater degree of centralized wage setting reduces the inflation-restraining effect of …