It is an open question whether and how indexed wage contracts reduce welfare or raise average inflation. This paper … analyzes the impact of indexed wage contracts on inflation and social welfare in a Barro-Gordon model with discretionary … monetary policy by endogenizing social costs of indexation. Main results are: Wage indexation reduces the inflation bias but …

recurrently. The escape route dynamics cause recurrent outcomes close to the Ramsey (commitment) inflation rate in a model with an …

Current perspectives on the Phillips curve, a core macroeconomic concept that treats the relationship between inflation … Phillips Curve -- 3 Forecasting Inflation -- 4 The Labor Market and the Phillips Curve -- 5 Inflation Expectations -- 6 …

Inflation and unemployment are central issues in macroeconomics. While progress has been made on these issues recently … using models that explicitly incorporate search-type frictions, existing models analyze either unemployment or inflation in … isolation. We develop a framework to analyze unemployment and inflation together. This makes contributions to disparate …

There has been mounting evidence that the inflation process has been changing. Inflation is now much lower and much … more effective. There is no doubt in our mind that this explanation goes a long way towards explaining the better inflation …. We argue that prevailing models of inflation are too "country-centric", in the sense that they fail to take sufficient …

It is an open question whether and how indexed wage contracts reduce welfare or raise average inflation. This paper … analyzes the impact of indexed wage contracts on inflation and social welfare in a Barro Gordon model with discretionary … monetary policy by endogenizing social costs of indexation. Main results are: Wage indexation reduces the inflation bias but …