Is There a Trade-Off between Inflation and Output Stabilization?
36 Pages Posted: 23 May 2011 Last revised: 11 Nov 2013
Date Written: May 2011
Not in an estimated DSGE model of the US economy, once we account for the fact that most of the high-frequency volatility in wages appears to be due to noise, rather than to variation in workers' preferences or market power.
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