Jonathon Hazell on Phillips Curves, Wage Rigidity, and How to Measure R-Star

01/22/24 • 70 min

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Jonathon Hazell is an assistant professor of economics at the London School of Economics. Jonathon joins Macro Musings to talk about Phillips curves, R-stars, and nominal wage rigidity. Specifically, Jonathon and David also discuss the how to view the recent inflation experience, how to measure the natural rate using natural experiments, the downward nature of wage rigidity, and a lot more.

Transcript for this week’s episode.

Jonathon’s Twitter: @JADHazell

Jonathon’s website

Jonathon’s LSE profile

David Beckworth’s Twitter: @DavidBeckworth

Join the Macro Musings mailing list!

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Related Links:

*The Natural Rate of Return on Capital: Replication Package* by Jonathon Hazell, Veronica Backer-Peral, and Atif Mian

*The Slope of the Phillips Curve: Evidence From US States* by Jonathon Hazell, Juan Herreno, Emi Nakamura, and Jon Steinsson

*Measuring the Natural Rate Using Natural Experiments* by Veronica Backer-Peral, Jonathon Hazell, and Atif Mian

*Downward Rigidity in the Wage for New Hires* by Jonathon Hazell and Bledi Taska

*National Wage Setting* by Jonathon Hazell, Christina Patterson, Heather Sarsons, and Bledi Taska

*The Unemployment Volatility Puzzle: Is Wage Stickiness the Answer?* by Christopher Pissarides

Transcript for this week’s episode.

Jonathon’s Twitter: @JADHazell

Jonathon’s website

Jonathon’s LSE profile

David Beckworth’s Twitter: @DavidBeckworth

Join the Macro Musings mailing list!

Check out our new Macro Musings merch!

Related Links:

*The Natural Rate of Return on Capital: Replication Package* by Jonathon Hazell, Veronica Backer-Peral, and Atif Mian

*The Slope of the Phillips Curve: Evidence From US States* by Jonathon Hazell, Juan Herreno, Emi Nakamura, and Jon Steinsson

*Measuring the Natural Rate Using Natural Experiments* by Veronica Backer-Peral, Jonathon Hazell, and Atif Mian

*Downward Rigidity in the Wage for New Hires* by Jonathon Hazell and Bledi Taska

*National Wage Setting* by Jonathon Hazell, Christina Patterson, Heather Sarsons, and Bledi Taska

*The Unemployment Volatility Puzzle: Is Wage Stickiness the Answer?* by Christopher Pissarides

Previous Episode

Skanda Amarnath and Preston Mui on the Tribal Transitory Debate and the Future of the Fed’s Framework

Skanda Amarnath is the executive director of Employ America, a think tank that promotes full employment in the American economy, and Preston Mui is also a senior economist at Employ America. Skanda and Preston join Macro Musings to talk about U.S. disinflation and the debates surrounding it, as well as what we can expect from Fed policy in 2024 and beyond, and finally, the Fed’s framework review that is set to begin later this year.

Transcript for this week’s episode.

Skanda’s Twitter: @IrvingSwisher

Skanda’s Medium archive

Preston’s Twitter: @PrestonMui

Preston’s Github profile

Skanda and Preston’s Employ America bios

David Beckworth’s Twitter: @DavidBeckworth

Join the Macro Musings mailing list!

Check out our new Macro Musings merch!

*Three Motivations for Interest Rate Normalization: A Playbook for Fed Policy in 2024* by Preston Mui and Skanda Amarnath

Jerome Powell’s Opening Remarks at Monetary Policy Challenges in a Global Economy, a policy panel at the 24th Jacques Polak Annual Research Conferences, hosted by the IMF

Next Episode

Gauti Eggertsson on the Post-Pandemic Inflation Surge and its Implications for Monetary Policy

Gauti Eggertsson is a professor of economics at Brown University and is the author of several recent papers on the causes of the 2021-22 inflation surge and the lessons to be drawn from it for monetary policy going forward. Gauti is also a returning guest to Macro Musings, and he rejoins the show to talk about these papers and their findings. Specifically, David and Gauti discuss the role of the Fed’s FAIT framework in the post-pandemic inflation surge, the return of the non-linear Phillips curve, the merits of nominal GDP targeting and average nominal output targeting, Gauti’s policy suggestions for the Fed, and a lot more.

Transcript for this week’s episode.

Gauti’s Twitter: @GautiEggertsson

Gauti’s website

Gauti’s Brown University profile

David Beckworth’s Twitter: @DavidBeckworth

Join the Macro Musings mailing list!

Check out our new Macro Musings merch!

Related Links:

*The Inflation Surge of the 2020s: The Role of Monetary Policy* by Gauti Eggertsson and Donald Kohn

*It’s Baaack: The Surge in Inflation in the 2020s and the Return of the Non-Linear Phillips Curve* by Pierpaolo Benigno and Gauti Eggertsson

*The Slanted-L Phillips Curve* by Pierpaolo Benigno and Gauti Eggertsson

*A Toolkit for Solving Models with a Lower Bound on Interest Rates of Stochastic Duration* by Gauti Eggertsson, Sergey Egiev, Alessandro Lin, Josef Platzer, and Luca Riva