Hyperbolic Discounting and the Phillips Curve

Liam Graham and Dennis J. Snower ()
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Dennis J. Snower: Kiel Institute for the World Economy

No 3477, IZA Discussion Papers from Institute for the Study of Labor (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)
New Economics Papers: this item is included in nep-cba, nep-ltv and nep-mac
Date: Written 2008-04
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Related works:
Working Paper: Hyperbolic Discounting and the Phillips Curve (2007)
Journal Article: Hyperbolic Discounting and the Phillips Curve (2008)
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