Monetary Policy When Wages are Downwardly Rigid: Friedman Meets Tobin
27 Pages Posted: 6 Feb 2010
Date Written: December 2009
Abstract
In a monetary economy with downwardly rigid wages, the central banker should target a low, but strictly positive, inflation rate.
Keywords: Downward nominal wage rigidity, Asymmetric effects of monetary policy, Optimal inflation, Nonlinear dynamics
JEL Classification: E4, E5
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Marvin Goodfriend and Robert G. King
-
By Aubhik Khan, Robert G. King, ...
-
By Aubhik Khan, Robert G. King, ...
-
By Aubhik Khan, Robert G. King, ...