We study the output costs of a reduction in monetary growth in a dynamic general equilibrium model with staggered wages …

In most European countries, money wages are given in collective agreements or individual employment contracts, and the … employer cannot unilaterally cut wages, even after the expiration of a collective agreement. Ceteris paribus, workers have a … stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have …

the special case in which prices are sticky and wages are perfectly flexible. When the model is calibrated to exhibit an …

In most European countries, money wages are given in collective agreements or individual employment contracts, and the … employer cannot unilaterally cut wages, even after the expiration of a collective agreement. Ceteris paribus, workers have a … stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have …

step, I investigate how wages in the production sector affect bank net worth and the process of financial intermediation in … capital to a change in wages. This finding is relevant for the determination of optimal monetary policy, both for financial … shocks and supply shocks inflation stabilization imposes high welfare costs. At the same time, stabilizing nominal wages …

rigid nominal wages. The paper shows that, when nominal wages are fully flexible and pass-through is low to moderate, the … stabilize nominal wages. The results of the paper suggest that, by committing to a common monetary policy in a common …

, because firms are reluctant to cut workers' nominal wages, a moderate amount of inflation can be used to facilitate needed … reductions in real wages. This paper discusses the link from downward nominal-wage rigidity to unemployment and considers some of …