@techreport{NBERw3146,
 title = "Real Wages, Monetary Accommodation, and Inflation",
 author = "Elhanan Helpman and Leonardo Leiderman",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "3146",
 year = "1990",
 month = "October",
 URL = "http://www.nber.org/papers/w3146",
 abstract = {We analyze the dynamics of inflation in an economy characterized by a forward-looking, staggered, price and wage determination process, and by monetary accommodation. In our model, inflation reconciles the conflicting claims of workers and firms. The model is capable of generating a positive association between real wages and inflation, of the type that has been observed in some high-inflation countries. It generates a  price-wage spiral but does not result in inflationary inertia.},
}