RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries
Equation (3c)
w
2
t+n
−
1
=
w
2
t
+
(
1
−
θ
)
(
t
p
c
t+n
−
1
−
t
p
c
t
)
+
θ
(
p
c
t+n
−
2
−
t
p
c
t+n
−
2
)
+
θ
(
p
c
t+n
−
3
−
t
p
c
t+n
−
3
)
⋮
+
θ
(
p
c
t+1
−
t
p
c
t+1
)
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