%0 Report
        %A Snower, Dennis J.
%A Karanassou, Marika
        %T An Anatomy of the Phillips Curve
        %D 2002
        %8 2002 Nov
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 635
        %U https://www.iza.org/publications/dp635
        %X The paper examines how the long-run inflation-unemployment tradeoff depends on the
degree to which wage-price decisions are backward- versus forward-looking. When
economic agents, facing time-contingent, staggered nominal contracts, have a positive rate
of time preference, the current wage and price levels depend more heavily on past variables
(e.g. past wages and prices) than on future variables. Consequently, the long-run Phillips
curve becomes downward-sloping and, indeed, quit flat for plausible parameter values. This
paper provides an intuitive account of how this long-run Phillips curve arises.
        %K Inflation-unemployment tradeoff
%K wage-price staggering
%K monetary policy
%K forward- and backward-looking wage-price behavior
%K traditional and New Phillips curve