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Fixed-Wage Contracts and Monetary Non-neutrality

By Maria Björklund, Mikael Carlsson, and Oskar Nordström Skans

American Economic Journal: Macroeconomics, April 2019

We study the importance of wage rigidities for the monetary policy transmission mechanism. Using uniquely rich micro data on Swedish wage negotiations, we isolate periods when the labor market is covered by fixed-wage contracts. Importantly, negotiations ...