Wage Curve vs. Phillips Curve : are there macroeconomic implications?
|Title:||Wage Curve vs. Phillips Curve : are there macroeconomic implications?||Authors:||Whelan, Karl||Permanent link:||http://hdl.handle.net/10197/246||Date:||14-Oct-1997||Abstract:||The standard derivation of the accelerationist Phillips curve relates expected real wage inflation to the unemployment rate and invokes a constant price markup and adaptive expectations to generate the accelerationist price inflation formula. Blanchflower and Oswald (1994) argue that microeconomic evidence of a low autoregression coefficient in real wage regressions invalidates the macroeconomic Phillips curve. This conclusion has been disputed by a number of authors on the grounds that the true autoregression coefficient is close to one. This paper shows that given the assumption of a constant price markup, micro-level real wage dynamics have no observable implications for macro data on wage and price inflation.||Type of material:||Working Paper||Publisher:||Federal Reserve||Subject LCSH:||Phillips curve
Inflation (Finance)--Mathematical models
|DOI:||10.2139/ssrn.44610||Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Research Collection|
Show full item record
Page view(s) 20149
This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.