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Home > Publications and Research > Research > Working Papers > July 2009

Working Papers

Structural Inflation Models with Real Wage Rigidities: The Case of Canada

Working Paper 2009-21 - Jean-Marie Dufour, Lynda Khalaf, Maral Kichian

Real wage rigidities have recently been proposed as a way of building intrinsic persistence in inflation within the context of New Keynesian Phillips Curves. Using two recent illustrative structural models, we evaluate empirically the importance of real wage rigidities in the data and the extent to which such models provide useful information regarding price stickiness.
Topics: Econometric and statistical methods; Inflation and prices; Labour markets

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