The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Sticky Wages and Staggered Wage Setting

  • Christopher J. Erceg
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2719

Abstract

Staggered wage contracts have become a widely utilized framework for modelling nominal wage stickiness and for assessing its macroeconomic consequences, including for the transmission of monetary shocks. This article provides a heuristic description of the staggered contracts model, motivates its salient features, and discusses its evolution.

Keywords

Contract multiplier Great depression Inflation inertia Keynes, J. M Monetary transmission mechanism Output gap Staggered wage contracts Sticky wages and staggered wage setting Thornton, H Time-dependent’ pricing Wage indexation Wage rigidity 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Christopher J. Erceg
    • 1
  1. 1.