Christoffel, Kai; Costain, James S.; De Walque, Gregory; … - European Central Bank - 2009
This paper reviews recent approaches to modeling the labour market and assessestheir implications for ination dynamics … through both their e¤ect on marginalcost and on price-setting behaviour. In a search and matching environment, weconsider the …, interactions at the
rmlevel between price and wage-setting, alternative forms of hiring frictions, searchon-the-job and endogenous …