TY  - RPRT
        AU  - Snower, Dennis J.
AU  - Karanassou, Marika
        TI  - An Anatomy of the Phillips Curve
        PY  - 2002/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 635
        UR  - https://www.iza.org/publications/dp635
        AB  - 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.
        KW  - Inflation-unemployment tradeoff
KW  - wage-price staggering
KW  - monetary policy
KW  - forward- and backward-looking wage-price behavior
KW  - traditional and New Phillips curve
        ER  -