New essay: It was a mistake to switch to sticky price models from sticky wage models
basilhalperin.substack.com
https://basilhalperin.com/essays/sticky-prices-vs-sticky-wages.html TLDR: Intuitively, wage stickiness seems more important than price stickiness The first microfounded ‘new Keynesian’ models did use wage stickiness, not price stickiness; but in the mid-1980s there was a transition to sticky price models, which dominate today
New essay: It was a mistake to switch to sticky price models from sticky wage models
New essay: It was a mistake to switch to…
New essay: It was a mistake to switch to sticky price models from sticky wage models
https://basilhalperin.com/essays/sticky-prices-vs-sticky-wages.html TLDR: Intuitively, wage stickiness seems more important than price stickiness The first microfounded ‘new Keynesian’ models did use wage stickiness, not price stickiness; but in the mid-1980s there was a transition to sticky price models, which dominate today