Hyperbolic Discounting and the Phillips Curve |
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| Authors: | LIAM GRAHAM DENNIS J. SNOWER |
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| Affiliation: | Liam Graham;is from the Department of Economics, University College London, Gower Street, London WC1E 6BT, UK (E-mail:). Dennis J. Snoweris from the Kiel Institute for the World Economy, Duesternbrooker Weg 120, 24105 Kiel, Germany (E-mail:). |
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| Abstract: | Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with hyperbolic discounting leads to inflation having significant long-run effects on real variables. |
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| Keywords: | E20 E40 E50 |
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