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Real Wages, Monetary Accommodation, and Inflation / Elhanan Helpman, Leonardo Leiderman.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Helpman, Elhanan.
Contributor:
National Bureau of Economic Research.
Leiderman, Leonardo.
Series:
Working Paper Series (National Bureau of Economic Research) no. w3146.
NBER working paper series no. w3146
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1989.
Summary:
We analyze the dynamics of inflation in an economy characterized by a forward-looking, staggered, price and wage determination process, and by monetary accommodation. In our model, inflation reconciles the conflicting claims of workers and firms. The model is capable of generating a positive association between real wages and inflation, of the type that has been observed in some high-inflation countries. It generates a price-wage spiral but does not result in inflationary inertia.
Notes:
Print version record
October 1989.

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