We derive aggregate supply (AS) relationships for an intermediate-run macro model. The wage-price spiral provides the conceptual framework for a synthesis of different contesting theoretical and empirical perspectives on the AS curve: the Phillips curve model (PCM) and the wage-price equilibrium...

We present a dynamic model of real wages in the open economy that encapsulates the well-known “competing claims model” or “incomplete competition model” of real wage determination. In general, the model determines the development of inflation, real wages and the real exchange rate for...

Models in the literature on inflation targeting are mostly theoretical or calibrated, even though inflation targeting requires inflation forecasts. The motivation for this paper is therefore threefold: foremost we want to build an econometric model for forecasting inflation in Norway--one...