"We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications for the unemployment-inflation tradeoff and for the conduct of monetary policy.We proceed in two steps. We first leave nominal rigidities aside. We show that, under a standard...

We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications for the unemployment-inflation tradeoff and for the conduct of monetary policy.<br><br>We proceed in two steps. We first leave nominal rigidities aside. We show that, under a standard...

My assignment for this conference on U.S.wage trends was, as an outsider, to drawthe macroeconomic implications of wideningwage inequality. I shall do so in six points.[...]