This paper studies monetary policy in the presence of asymmetric wage indexation. It is found that monetary authorities do not react to small output shocks and that their reaction to large shocks is asymmetric, insofar as they absorb positive shocks more than negative ones. As a consequence, asymmetric wage indexation skews the distribution of output to the left, and can therefore be contractionary. It has ambiguous effects on expected inflation, on the volatility of output and inflation, and on expected welfare, relative to an equivalent symmetric indexation. Optimal symmetric inflation however always outperforms optimal asymmetric indexation.info:eu-repo/semantics/publishe
Recent literature on wage indexation1 stresses its important role in the area of macroeconomic stabi...
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It has long been recognized that contemporaneous wage indexation stabilizes output and employment in...
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In this article we study the theory of monetary policy when the monetary authority faces asymmetries...
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This paper develops a unified framework for the analysis of wage indexation and monetary policy in t...
Recent literature on wage indexation1 stresses its important role in the area of macroeconomic stabi...
This note surveys the welfare and real consequences of wage indexing in a stochastic economy whose m...
This essay examines the role of wage indexation in dampening macroeconomic fluctuations in a simple ...
This paper analyzes the impact of indexed wage contracts on inflation and social welfare in a Barro–...
It has long been recognized that contemporaneous wage indexation stabilizes output and employment in...
This paper analyses the implications of heterogeneity in the type of downward wage rigidity (nominal...
It is an open question whether and how indexed wage contracts reduce welfare or raise average inflat...
This paper investigates the effects of wage indexation on the time-consistent level of inflation. De...
The paper deals with the asymmetric effects on output of tight and easy monetary policy: the output ...
This paper presents a model of asymmetric (S,s) pricing. We investigate implications of such a behav...
This thesis analyses if macroeconomic policy has asymmetric effects on output and unemployment, comp...
In this article we study the theory of monetary policy when the monetary authority faces asymmetries...
We analyze a model economy with only monetary shocks, in which all spot markets are competi-tive and...
This paper proposes a contract theory of wage-price indexation, assuming labor contracts that stipul...
This paper develops a unified framework for the analysis of wage indexation and monetary policy in t...
Recent literature on wage indexation1 stresses its important role in the area of macroeconomic stabi...
This note surveys the welfare and real consequences of wage indexing in a stochastic economy whose m...
This essay examines the role of wage indexation in dampening macroeconomic fluctuations in a simple ...