Downward Nominal Wage Rigidity and Determinacy of Equilibrium
研究向下名义工资刚性如何解决零利率下限与均衡确定性之间的冲突，发现该刚性可防止价格和产出螺旋式下降，从而解释长期零利率下限现象并给出合理的产出与通胀降幅。
Abstract It is well known in the literature that there is a tension between the frequency and duration of the zero lower bound (ZLB) on the nominal interest rate and the determinacy of equilibrium. In this short paper, I show that the presence of downward nominal wage rigidity (DNWR) resolves the tension by preventing a vicious cycle of price declines and output contractions under the ZLB. Consequently, the model with DNWR can replicate the long‐lived ZLB episodes observed in the data. It also implies a plausible size of output and inflation declines at the ZLB.