Blanchard, Olivier; Galí, Jordi - Center for Financial Studies - 2007
-Mortensen-Pissarides model, with its focus on labor market frictions and unemployment. In developing this model, we proceed in two steps. We … Classification: E32, E50
Keywords: New Keynesian Model, Labor Market Frictions, Search Model, Unemployment,
Sticky Prices, Real … view.
† Labor market frictions and the nature of wage bargaining are central to
understanding movements in unemployment …