Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/49379
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dc.contributor.authorVaona, Andreaen_US
dc.date.accessioned2011-08-18en_US
dc.date.accessioned2011-09-09T12:46:10Z-
dc.date.available2011-09-09T12:46:10Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/49379-
dc.description.abstractThe present paper explores the connection between inflation and unemployment in different models with fair wages both in the short and in the long runs. Under customary assumptions regarding the sign of the parameters of the effort function, more inflation lowers the unemployment rate, though to a declining extent. This is because firms respond to inflation - that spurs effort by decreasing the reference wage - by increasing employment, so to maintain the effort level constant, as implied by the Solow condition. Under wage staggering this effect is stronger because wage dispersion magnifies the impact of inflation on effort. A stronger effect of nflation on unemployment is also produced under varying as opposed to fixed capital, given that in the former case the boom produced by a monetary expansion is reinforced by an increase in nvestment. Therefore, we provide a new theoretical foundation for recent empirical contributions finding negative long- and short-run effects of inflation on unemployment.en_US
dc.language.isoengen_US
dc.publisher|aKiel Institute for the World Economy (IfW) |cKielen_US
dc.relation.ispartofseries|aKiel Working Paper |x1713en_US
dc.subject.jelE3en_US
dc.subject.jelE20en_US
dc.subject.jelE40en_US
dc.subject.jelE50en_US
dc.subject.ddc330en_US
dc.subject.keywordEfficiency wagesen_US
dc.subject.keywordmoney growthen_US
dc.subject.keywordlong-run Phillips curveen_US
dc.subject.keywordtrend inflationen_US
dc.subject.keywordwage staggeringen_US
dc.subject.stwPhillips-Kurveen_US
dc.subject.stwEffizienzlohnen_US
dc.subject.stwGeldmengeen_US
dc.subject.stwInflationen_US
dc.subject.stwTrenden_US
dc.subject.stwLohnrigiditäten_US
dc.subject.stwTheorieen_US
dc.titleFour variations on fair wages and the Phillips curveen_US
dc.typeWorking Paperen_US
dc.identifier.ppn666293333en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:ifwkwp:1713-

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