Birinci, Serdar; Karahan, Fatih; Mercan, Yusuf; See, Kurt - 2022
We develop a heterogeneous-agent New Keynesian model featuring a frictional labor market with on-the-job search to … Recession disappeared during the recovery, we use the model to quantify the effect of EE transitions on inflation in this period … direct effect is partially mitigated by the equilibrium decline in market tightness through aggregate demand that exerts …