Christoffel, Kai; Küster, Keith; Linzert, Tobias - 2006
We focus on a quantitative assessment of rigid labor markets in an environment of stable monetary policy. We ask how … wages and labor market shocks feed into the inflation process and derive monetary policy implications. Towards that aim, we …-euro heterogeneity in wage bargaining we take this as the first-best approximation at hand for modelling monetary policy in the presence …