distribution of Italian wages during the 1970s and 1980s. The SM imposed large real wage increases at the bottom of the …

response to aggregate shocks and monetary policy. We show that workers index wages to past inflation when output fluctuations … inflation, a finding that is at odds with the assumption of constant indexation parameters in most New-Keynesian DSGE models. We … are primarily explained by technology and permanent inflation-target shocks, whereas they index to trend inflation when …

may raise the variance of inflation rates. In social optimum wages are fully indexed to the price level, but this requires …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 …

Empirical estimations suggest heavy-tailed unconditional distributions for inflation, the output gap and the interest … propose a model which replicates the above mentioned empirical features of inflation,the output gap and the interest rate and … distributions of inflation, the output gap and the interest rates exhibit heavy-tailed characteristics. Secondly, under an …

is subsequently shown that variations in trend inflation significantly explain variations in the degree of wage …

Mexico in the period 1996-2011, which was characterized by a reduction in the level and volatility of inflation. Our results … downward nominal wage rigidities seems to have increased slightly as inflation decreased, as found in studies for some other … countries that achieved a lower and more stable inflation. …