Asymmetric inflation expectations, downward rigidity of wages, and asymmetric business cycles
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DOI: 10.1016/j.jmoneco.2019.04.014
Abstract: Household expectations of the inflation rate are much more sensitive to inflation than to disinflation. To the extent that workers have bargaining power in wage determination, this asymmetry in their beliefs can make wages respond… read more here.
Keywords: asymmetric inflation; rigidity wages; downward rigidity; inflation ... See more keywords