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Hyperbolic Discounting and the Phillips Curve

Author

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  • LIAM GRAHAM
  • DENNIS J. SNOWER

Abstract

Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with hyperbolic discounting leads to inflation having significant long‐run effects on real variables.

Suggested Citation

  • Liam Graham & Dennis J. Snower, 2008. "Hyperbolic Discounting and the Phillips Curve," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(2‐3), pages 427-448, March.
    • Handle: RePEc:wly:jmoncb:v:40:y:2008:i:2-3:p:427-448
    DOI: 10.1111/j.1538-4616.2008.00120.x
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    4. repec:osf:inarxi:5ydqg_v1 is not listed on IDEAS
    5. Jin, Gu & Zhu, Tao, 2022. "Heterogeneity, decentralized trade, and the long-run real effects of inflation," Journal of Economic Theory, Elsevier, vol. 201(C).

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