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Labor markets and monetary policy: A new-Keynesian model with unemployement

Blanchard, Olivier; Galí, Jordi - Department of Economics and Business, Universitat … - 2006

We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications … for the unemployment-inflation trade- off and for the conduct of monetary policy. We proceed in two steps. We first leave … unemployment in the constrained efficient allocation. We then focus on the implications of alternative real wage setting mechanisms …

Persistent link: https://www.econbiz.de/10005772253

Employment consequences of restrictive permanent contracts: Evidence from Spanish labor market reforms

Kugler, Adriana; Jimeno, Juan F.; Hernanz, Virginia - Department of Economics and Business, Universitat … - 2002

Temporary employment contracts allowing unrestricted dismissals were introduced in Spain in 1984 and quickly came to … transitions from unemployment and temporary employment into permanent employment for young and older workers, although the effects …

Persistent link: https://www.econbiz.de/10005827506

Slow recoveries: A structural interpretation

Galí, Jordi; Smets, Frank; Wouters, Rafael - Department of Economics and Business, Universitat … - 2012

An analysis of the performance of GDP, employment and other labor market variables following the troughs in postwar U.S. business cycles points to much slower recoveries in the three most recent episodes, but does not reveal any significant change over time in the relation between GDP and...

Persistent link: https://www.econbiz.de/10010849609

Understanding the gains from wage flexibility: The exchange rate connection

Galí, Jordi; Monacelli, Tommaso - Department of Economics and Business, Universitat … - 2013

We study the gains from increased wage flexibility and their dependence on exchange rate policy, using a small open economy model with staggered price and wage setting. Two results stand out: (i) the impact of wage adjustments on employment is smaller the more the central bank seeks to stabilize...

Persistent link: https://www.econbiz.de/10010849633

The effects of a money-financed fiscal stimulus

Galí, Jordi - Department of Economics and Business, Universitat … - 2014

I analyze the effects of an increase in government purchases financed entirely through seignorage, in both a classical and a New Keynesian framework, and compare them with those resulting from a more conventional debt-financed stimulus. My findings point to the importance of nominal rigidities...

Persistent link: https://www.econbiz.de/10010929584

Trends in hours, balanced growth and the role of technology in the business cycle

Galí, Jordi - Department of Economics and Business, Universitat … - 2005

The present paper revisits a property embedded in most dynamic macroeconomic models: the stationarity of hours worked. First, I argue that, contrary to what is often believed, there are many reasons why hours could be nonstationary in those models, while preserving the property of balanced...

Persistent link: https://www.econbiz.de/10005704857

Macroeconomic modeling for monetary policy evaluation

Galí, Jordi; Gertler, Mark - Department of Economics and Business, Universitat … - 2007

We describe some of the main features of the recent vintage macroeconomic models used for monetary policy evaluation. We point to some of the key differences with respect to the earlier generation of macro models, and highlight the insights for policy that these new frameworks have to offer. Our...

Persistent link: https://www.econbiz.de/10005704917

The macroeconomic effects of oil price shocks: Why are the 2000s so different from the 1970s?

Blanchard, Olivier J.; Galí, Jordi - Department of Economics and Business, Universitat … - 2007

We characterize the macroeconomic performance of a set of industrialized economies in the aftermath of the oil price shocks of the 1970s and of the last decade, focusing on the differences across episodes. We examine four different hypotheses for the mild effects on inflation and economic...

Persistent link: https://www.econbiz.de/10005708002

Understanding the effects of government spending on consumption

Galí, Jordi; López-Salido, J. David; Vallés, Javier - Department of Economics and Business, Universitat … - 2002

Recent evidence suggests that consumption rises in response to an increase in government spending. That finding cannot be easily reconciled with existing optimizing business cycle models. We extend the standard new Keynesian model to allow for the presence of rule-of-thumb consumers. We show how...

Persistent link: https://www.econbiz.de/10005827485

Modern perspectives on stabilization policies

Galí, Jordi - Department of Economics and Business, Universitat … - 2004

associated with recessions, and (ii) the effectiveness of fiscal policy as a stabilization tool. The paper also discusses some …

Persistent link: https://www.econbiz.de/10005772004