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Do labor market activities help predict inflation?

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  • Luojia Hu
  • Maude Toussaint-Comeau

Abstract

The authors conduct an empirical analysis of the role of labor market activities in inflation and conclude that wage growth is not very informative for predicting price inflation. But price inflation does seem to help predict wage growth.

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Bibliographic Info

Article provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives.

Volume (Year): (2010)
Issue (Month): Q II ()
Pages: 52-63

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Handle: RePEc:fip:fedhep:y:2010:i:qii:p:52-63:n:v.34no.2

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Related research

Keywords: Labor market;

References

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  1. Jeff Fuhrer & George Moore, 1993. "Inflation persistence," Proceedings, Board of Governors of the Federal Reserve System (U.S.).
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  20. Jeffrey R. Campbell & Ellen R. Rissman, 1994. "Long-run labor market dynamics and short-run inflation," Economic Perspectives, Federal Reserve Bank of Chicago, issue Mar, pages 15-27.
  21. Joseph Stiglitz, 1997. "Reflections on the Natural Rate Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 3-10, Winter.
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  23. Yun, Tack, 1996. "Nominal price rigidity, money supply endogeneity, and business cycles," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 345-370, April.
  24. Rudd, Jeremy & Whelan, Karl, 2005. "New tests of the new-Keynesian Phillips curve," Journal of Monetary Economics, Elsevier, vol. 52(6), pages 1167-1181, September.
  25. Fosu, Augustin Kwasi & Huq, Shamsul, 1988. "Price inflation and wage inflation : A cause-effect relationship?," Economics Letters, Elsevier, vol. 27(1), pages 35-40.
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  28. repec:fip:fedcpd:y:2000:i:apr:p:1-14:n:1 is not listed on IDEAS
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