Winkler, Roland C.; Campolmi, Alessia; Faia, Ester - 2010
side, in a model with a non-Walrasian labor market, policies aimed at reducing labor wedges, such as cost of hiring, are … rising unemployment. Is that really the case? We explore those issues in a New Keynesian model in which unemployment arises …The endorsement of expansionary fiscal packages has often been based on the idea that large multipliers can contrast …