Wage Indexation and the Monetary Policy Regime

Selien De Schryder, Gert Peersman () and Joris Wauters

No 5107, CESifo Working Paper Series from CESifo

Abstract: We estimate a New Keynesian wage Phillips curve for a panel of 24 OECD countries, and allow the degree of wage indexation to past inflation to vary according to the monetary policy regime. We find that the extent of wage indexation is significantly lower in an inflation targeting regime, in contrast to monetary targeting, exchange rate targeting and policy regimes without an explicit quantitative anchor. The results put into question whether embedding a constant degree of wage indexation in standard DSGE models is truly structural.

Keywords: wage indexation; monetary policy regimes; cross-country panel; Phillips curve (search for similar items in EconPapers)
JEL-codes: C23 E42 J30 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Wage indexation and the monetary policy regime (2020)
Working Paper: WAGE INDEXATION AND THE MONETARY POLICY REGIME (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5107

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