Heterogeneous-agent New Keynesian models with sticky nominal wages usually assume that wage-setting unions demand the …, wages and inflation to monetary policy shocks becomes notably less pronounced. This attenuation reflects that hours worked … respond differently across the income distribution. The second model version we consider maintains the assumption that all …

ensure the following: (i) equality among the risk-adjusted rates of return and (ii) equilibrium in the output market. The … also conducted. These assess the effects of risk on growth and the impact of fiscal policy on both the mean growth rate and …

frictions render labor-market risk countercyclical and endogenous to monetary policy. Our main result is that a majority of …

We answer the question posed by the title by specifying and estimating a simple dynamic model of prices, wages, and … product-market and labor-market shocks on prices and nominal wages and to quantify the sources of U.S. pandemic-era inflation …, most of the inflation surge that began in 2021 was the result of shocks to prices given wages. These shocks included sharp …