Hyperbolic Discounting and the Phillips Curve

Liam Graham () and Dennis J. Snower ()
Additional contact information
Liam Graham: University College London
Dennis J. Snower: Hertie School of Governance

No 3477, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with hyperbolic discounting leads to inflation having significant long-run effects on real variables.

Keywords: inflation; unemployment; Phillips curve; nominal inertia; monetary policy; dynamic general equilibrium (search for similar items in EconPapers)
JEL-codes: E20 E40 E50 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2008-04
New Economics Papers: this item is included in nep-cba, nep-ltv and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (61)

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Related works:
Journal Article: Hyperbolic Discounting and the Phillips Curve (2008)
Working Paper: Hyperbolic discounting and the Phillips curve (2008)
Working Paper: Hyperbolic discounting and the Phillips curve (2007)
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