In a search and matching environment, this paper assesses a range of modeling setups against macro evidence for the …-specific labour imply a sufficient degree of real rigidity, and so can reproduce inflation dynamics well. However, they imply too … little real rigidity and, so, too volatile inflation, owing to strong responses of marginal wages and hours per employee …

and sometimes the unconditional means of the nominal rate, inflation and the output gap are strongly affected by … unaffected by the presence of the zero lower bound, conditional on a strong deflationary shock simple instrument rules perform …

benefits, on inflation volatility. With this purpose, we build a New Keynesian model with search and matching frictions in the …This paper studies the effect of labor market reform, in the form of reductions in firing costs and unemployment … inflation in response to shocks, by affecting the volatility of the three components of real marginal costs (hiring costs …

the unemployment, this paper tries to answer the following question: Is a nominal permanent disinflation compatible with … short-run unemployment costs but also with long-run output benefits? The answer to this question crucially depends on the …

This paper considers a dynamic matching model with imperfectly observable worker effort. In equilibrium, the wage …

Political Science on June 4th. It starts by asking what factors have been behind the remarkable retreat of inflation that has …

During the 1970s and early 1980s, Spain suffered high rates of inflation but inflation declined and by 1997 inflation … had fallen to approximately 2 percent. To fight inflation, Spain implemented austere monetary programs, joined the EMS in … 1989, enacted central bank autonomy in 1994, and introduced inflation targets in January 1995. Certainly, these and other …

and its implications for US output, hours and inflation. Second we evaluate the extent to which that responses can be …

An exogenous oil price shock raises inflation and contracts output, similar to a negative productivity shock. In the … standard New Keynesian model, however, this does not generate a tradeoff between inflation and output gap volatility: under a … strict inflation targeting policy, the output decline is exactly equal to the efficient output contraction in response to the …

We analyse the incidence of endogenous entry and firm TFP-heterogeneity on the response of aggregate inflation to … distribution of firms in Spain. We then compare the inflation response to technology, interest rate and entry cost shocks, among … others. We find that structures in which large (more productive) firms predominate tend to deliver more muted inflation …