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008170607s2017    oncd    ob   f000 0 eng d
040 |aCaOODSP|beng
041 |aeng|bfre
043 |an-cn---
0861 |aFB3-7/2017-6E-PDF
1001 |aBrouillette, Dany, |d1978-
24510|aDownward nominal wage rigidity, inflation and unemployment |h[electronic resource] : |bnew evidence using micro‐level data / |cby Dany Brouillette and Natalia Kyui.
260 |a[Ottawa] : |bBank of Canada, |cc2017.
300 |aiii, 13 p. : |bcol. charts
4901 |aStaff analytical note = Note analytique du personnel, |x2369-9639 ; |v2017-6
500 |aCover title.
504 |aIncludes bibliographical references.
5203 |a"Recent evidence suggests that the extent of downward nominal wage rigidity (DNWR) inthe Canadian labour market has risen following the 2008–09 recession. This note studies whether DNWR can lead to a long‐run trade‐off between inflation and unemployment, especially at lower rates of inflation—a question that has important implications for the optimal level of inflation in the long run. The results suggest that the trade‐off between unemployment and inflation remains weak despite the estimated increase in DNWR. In particular, the long‐run Phillips curve is close to vertical at inflation rates of 2 per cent or more, in line with earlier findings. As a result, an increase in long‐term inflation from 2 to 3 per cent would lower unemployment by about 0.1–0.2 percentage points. Overall, our results suggest that the benefits of raising the inflation target to attain a lower long‐term unemployment level seem rather weak"--Abstract, p. iii.
546 |aIncludes abstract in French.
69207|2gccst|aLabour market
69207|2gccst|aInflation
69207|2gccst|aStatistical analysis
7001 |aKyui, Natalia.
7102 |aBank of Canada.
830#0|aStaff analytical note,|x2369-9639 ; |v2017-6|w(CaOODSP)9.807323
85640|qPDF|s1.12 MB|uhttps://publications.gc.ca/collections/collection_2017/banque-bank-canada/FB3-7-2017-6-eng.pdf