Downward Nominal Wage Rigidity in the United States During and After the Great Recession

@article{Fallick2016DownwardNW,
  title={Downward Nominal Wage Rigidity in the United States During and After the Great Recession},
  author={Bruce C. Fallick and Michael K. Lettau and William L. Wascher},
  journal={Board of Governors of the Federal Reserve System Research Series},
  year={2016}
}
Rigidity in wages has long been thought to impede the functioning of labor markets. One recent strand of the research on wage flexibility in the United States and elsewhere has focused on the possibility of downward nominal wage rigidity and what implications such rigidity might have for the macroeconomy at low levels of inflation. The Great Recession of 2008-09, during which the unemployment rate topped 10 percent and price deflation was at times seen as a distinct possibility, along with the… 
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