- Tytuł:
- Microeconomic Foundation for Phillips Curve with a Three-Period Overlapping Generations Model and Negative Real Balance Effect
- Autorzy:
- Tanaka, Yasuhito
- Powiązania:
- https://bibliotekanauki.pl/articles/1964883.pdf
- Data publikacji:
- 2021-07-26
- Wydawca:
- Uniwersytet Warszawski. Wydział Nauk Ekonomicznych
- Tematy:
-
microeconomic foundation
monopolistic competition
negative real balance effect
Phillips curve
a three-period overlapping generations model - Opis:
- We show a negative relation between the inflation rate and the unemployment rate, that is, the Phillips curve using a three-period overlapping generations (OLG) model with childhood period and pay-as-you-go pension for older generation under monopolistic competition with negative real balance effect. In a three-period OLG model, there may exist a negative real balance effect because consumers have debts and savings. A fall (or rise) in the nominal wage rate induces a fall (or rise) in the price, then by negative real balance effect, the unemployment rate rises (or falls), and we get a negative relation between the inflation rate and the unemployment rate. This conclusion is based on the premise of utility maximisation of consumers and profit maximisation of firms. Therefore, we present a microeconomic foundation for the Phillips curve. We also examine the effects of fiscal policy financed by seigniorage, which is represented by left-ward shift of the Phillips curve.
- Źródło:
-
Central European Economic Journal; 2021, 8, 55; 163-175
2543-6821 - Pojawia się w:
- Central European Economic Journal
- Dostawca treści:
- Biblioteka Nauki
Artykuł