Beissinger, Thomas and Knoppik, Christoph (2005) Sind Nominallöhne starr? Neuere Evidenz und wirtschaftspolitische Implikationen. Perspektiven der Wirtschaftspolitik 6 (2), pp. 171-188.
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In the presence of downwardly rigid nominal wages, low inflation may lead to higher equilibrium unemployment by hindering real wage adjustments. This article surveys and analyses the growing evidence on downwardly rigid nominal wages. We not only deal with assessments of the existence and extent of downward nominal wage rigidity, but also discuss its possible explanations and macroeconomic consequences. We conclude that downward nominal wage rigidity does exist, that its extent is substantial and that very likely the real consequences at low, close to zero inflation are non-negligible. The results of this strand of research should therefore be taken into account in the formulation of optimal inflation targets.
|Institutions:||Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie|
|Subjects:||300 Social sciences > 330 Economics|
|Refereed:||Yes, this version has been refereed|
|Created at the University of Regensburg:||Yes|
|Deposited On:||05 Oct 2009 12:38|
|Last Modified:||10 Oct 2009 03:02|