Hofmann, Boris; Peersman, Gert; Straub, Roland - In: Journal of Monetary Economics 59 (2012) 8, pp. 769-783
Supply and demand shocks had much stronger long-run effects on nominal wages and prices during the “Great Inflation”. For supply shocks, there is even a sign switch in the nominal wage response. Before and after the “Great Inflation”, nominal wages moved in the same direction as real...