How Do Nominal and Real Rigidities Interact? A Tale of the Second Best

被引:6
作者
Duval, Romain [1 ]
Vogel, Lukas [1 ]
机构
[1] Commiss European Communities, Directorate Gen Econ & Financial Affairs, B-1049 Brussels, Belgium
关键词
E30; F41; Q43; DSGE model; price stickiness; real wage rigidity; optimal policy; WAGE RIGIDITIES; MONETARY; INDEXATION; POLICY; MODEL; COST;
D O I
10.1111/j.1538-4616.2012.00540.x
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
This paper analyzes the importance of real wage rigidities, in particular through their interaction with price stickiness, in a New Keynesian model. Real wage rigidities result from a combination of staggered wage setting and partial indexation of nonreset wages to past inflation. Blanchard and Gali (2007) show real rigidities to introduce a trade-off between stabilizing inflation and the welfare-relevant output gap. The present paper complements their findings by showing that the welfare costs of real rigidities can be substantial compared to nominal frictions. In a typical tale of the second best, we also show that in the presence of real wage rigidities, higher price stickiness can be welfare enhancing.
引用
收藏
页码:1455 / 1474
页数:20
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