… is in transition to lower inflation? We show that wage indexation to expected inflation,
increased central bank credibility and a higher frequency of wage adjustments can increase the …

… Higher central bank credibility and a higher frequency of wage negotiations correspond
to lower inflation inertia and a lower cost of disinflation. We have come to these conclusions …

… wage indexation raises or reduces the cost of disinflation, this paper reexamines the effects
of wage indexing … to break the inflationary inertia at the beginning of the disinflation. A priori, …

… This can greatly increase the real costs of disinflation and hence make continuing monetary
… the failure of the disinflation. Even if we take the inertial inflation model at its face value, it is …

… It has been argued that an effective control of inertial inflation would require wage and price
… Any disinflation plan also requires the reduction of the sources of money creation, such as …

… the disinflation period increases with the degree of price stickiness … Firms' real marginal cost
equals the real wage w t … of price dynamics we now turn to the aggregate price index. When …

… of inflationary inertia by use of a wage-price spiral model, in which wage and price decisions
… In order to examine the effect of a monetary disinflation we have to first analyze inflationary …

… the effects of wage indexation on the cost of disinflation. … makes it harder to break the
initial inflationary inertia of the … wage indexation raises the cost of disinflation when indexed …

… , in spite of wage indexation, inflation was an effective policy instrument and disinflation was
… In order to break inflation inertia it was necessary to convince firms that they could no longer …

… study of inflationary inertia in repeated exchange rate–based … believe: wage indexation
increases the costs of disinflation. … indexation of prices and wages and the cost of inflation …