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Is there a trade-off between inflation and output stabilization?

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  • Alejandro Justiniano
  • Giorgio E. Primiceri
  • Andrea Tambalotti

Abstract

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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17071.

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Date of creation: May 2011
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Handle: RePEc:nbr:nberwo:17071

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