Real wage rigidity and the new Phillips curve: the Brazilian case

Detalhes bibliográficos
Autor(a) principal: Mazali,Antonio Alberto
Data de Publicação: 2010
Outros Autores: Divino,José Angelo
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402010000300005
Resumo: The new Keynesian Phillips curve has been criticized for not explaining the short-run inflation-output gap trade-off. Blanchard and Galí (2007) introduced real wage rigidity and derived a trade-off between stabilizing inflation and the gap between actual and efficient output. This paper estimates the new Phillips curve for the Brazilian economy, computes short-run trade-off, analyzes real wage rigidity, and tests theoretical restrictions imposed by the model. The GMM estimations fit the data very well and all theoretical restrictions are satisfied. There is strong real wage rigidity and a high output-gap cost to stabilize inflation in the short run.
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spelling Real wage rigidity and the new Phillips curve: the Brazilian casePhillips CurveReal Wage RigidityUnemploymentShort-Run Trade-offThe new Keynesian Phillips curve has been criticized for not explaining the short-run inflation-output gap trade-off. Blanchard and Galí (2007) introduced real wage rigidity and derived a trade-off between stabilizing inflation and the gap between actual and efficient output. This paper estimates the new Phillips curve for the Brazilian economy, computes short-run trade-off, analyzes real wage rigidity, and tests theoretical restrictions imposed by the model. The GMM estimations fit the data very well and all theoretical restrictions are satisfied. There is strong real wage rigidity and a high output-gap cost to stabilize inflation in the short run.Fundação Getúlio Vargas2010-09-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402010000300005Revista Brasileira de Economia v.64 n.3 2010reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGV10.1590/S0034-71402010000300005info:eu-repo/semantics/openAccessMazali,Antonio AlbertoDivino,José Angeloeng2010-11-10T00:00:00Zoai:scielo:S0034-71402010000300005Revistahttp://bibliotecadigital.fgv.br/ojs/index.php/rbe/issue/archivehttps://old.scielo.br/oai/scielo-oai.php||rbe@fgv.br1806-91340034-7140opendoar:2010-11-10T00:00Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)false
dc.title.none.fl_str_mv Real wage rigidity and the new Phillips curve: the Brazilian case
title Real wage rigidity and the new Phillips curve: the Brazilian case
spellingShingle Real wage rigidity and the new Phillips curve: the Brazilian case
Mazali,Antonio Alberto
Phillips Curve
Real Wage Rigidity
Unemployment
Short-Run Trade-off
title_short Real wage rigidity and the new Phillips curve: the Brazilian case
title_full Real wage rigidity and the new Phillips curve: the Brazilian case
title_fullStr Real wage rigidity and the new Phillips curve: the Brazilian case
title_full_unstemmed Real wage rigidity and the new Phillips curve: the Brazilian case
title_sort Real wage rigidity and the new Phillips curve: the Brazilian case
author Mazali,Antonio Alberto
author_facet Mazali,Antonio Alberto
Divino,José Angelo
author_role author
author2 Divino,José Angelo
author2_role author
dc.contributor.author.fl_str_mv Mazali,Antonio Alberto
Divino,José Angelo
dc.subject.por.fl_str_mv Phillips Curve
Real Wage Rigidity
Unemployment
Short-Run Trade-off
topic Phillips Curve
Real Wage Rigidity
Unemployment
Short-Run Trade-off
description The new Keynesian Phillips curve has been criticized for not explaining the short-run inflation-output gap trade-off. Blanchard and Galí (2007) introduced real wage rigidity and derived a trade-off between stabilizing inflation and the gap between actual and efficient output. This paper estimates the new Phillips curve for the Brazilian economy, computes short-run trade-off, analyzes real wage rigidity, and tests theoretical restrictions imposed by the model. The GMM estimations fit the data very well and all theoretical restrictions are satisfied. There is strong real wage rigidity and a high output-gap cost to stabilize inflation in the short run.
publishDate 2010
dc.date.none.fl_str_mv 2010-09-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402010000300005
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402010000300005
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/S0034-71402010000300005
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Fundação Getúlio Vargas
publisher.none.fl_str_mv Fundação Getúlio Vargas
dc.source.none.fl_str_mv Revista Brasileira de Economia v.64 n.3 2010
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
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institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
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