The Macroeconomics of Low Inflation.

Akerlof, G. A., Dickens, W. T., & Perry, G. L. (1996). The Macroeconomics of Low Inflation. Brookings Papers on Economic Activity, 1996(1), 1-76.

Type

Journal article

Intellectual base

Primary research

Year

1996

DOI

10.2307/2534764

Link

https://doi.org/10.2307/2534764

Cited from

systems_cybernetics

Cited by

1 citation across 1 artifact.

Each citation links to the sentence it supports in the citing article.

Primes

• Ratchet Effect
  • Removing the upward forcing (a recession) does not release the lock, so the separate unlatching channel is real-wage erosion through inflation rather than nominal cuts — a costlier, slower path.

    This sourceShows that downward nominal wage rigidity makes a small positive inflation rate 'grease the wheels' of labor-market adjustment — the unlatching channel the nominal-wage lock otherwise denies.

Verification

This reference passed the adversarial substantiation pipeline: it was checked to exist and to support the claim it is attached to. See how references were verified.

Registry ID ref:c04febc2dc24 · see in the full table