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Labor Markets and Monetary Policy : A New-Keynesian Model with Unemployment

Blanchard, Olivier - 2008

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

Persistent link: https://www.econbiz.de/10012464750

Real Wage Rigidities and the New Keynesian Model

Blanchard, Olivier - 2005

interpretation for the dynamic inflation--unemployment relation found in the data …

Persistent link: https://www.econbiz.de/10012466865

Non-Walrasian Unemployment Fluctuations

Gali, Jordi - 1995

. In the context of such a model, we introduce a measure of unemployment and analyze its equilibrium behavior. We show that … unemployment rate, in a way qualitatively consistent with the evidence. The model stresses the role of countercyclical markups in … the goods market as a key mechanism underlying the countercyclical behavior of unemployment …

Persistent link: https://www.econbiz.de/10012473532

The Macroeconomic Effects of Oil Shocks : Why are the 2000s So Different from the 1970s?

Blanchard, Olivier J. - 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/10012465282

On the Sources of the Great Moderation

Gali, Jordi - 2008

The remarkable decline in macroeconomic volatility experienced by the U.S. economy since the mid-80s (the so-called Great Moderation) has been accompanied by large changes in the patterns of comovements among output, hours and labor productivity. Those changes are reflected in both conditional...

Persistent link: https://www.econbiz.de/10012464476

Markups, Gaps, and the Welfare Costs of Business Fluctuations

Gali, Jordi - 2002

In this paper we present a simple, theory-based measure of the variations in aggregate economic efficiency associated with business fluctuations. We decompose this indicator, which we refer to as 'the gap', into two constituent parts: a price markup and a wage markup, and show that the latter...

Persistent link: https://www.econbiz.de/10012469865

New Perspectives on Monetary Policy, Inflation, and the Business Cycle

Gali, Jordi - 2002

The present paper provides an overview of recent developments in the analysis of monetary policy in the presence of nominal rigidities. The paper emphasizes the existence of several dimensions in which the recent literature provides a new perspective on the linkages among monetary policy,...

Persistent link: https://www.econbiz.de/10012469948

Monetary Policy Rules and Macroeconomic Stability : Evidence and Some Theory

Clarida, Richard - 1998

We estimate a forward-looking monetary policy reaction function for the postwar US economy, pre- and post-October 1979. Our results point to substantial differences in the estimated rule across periods. In particular, interest rate policy in the Volcker-Greenspan period appears to have been much...

Persistent link: https://www.econbiz.de/10012472363

Technology, Employment, and the Business Cycle : Do Technology Shocks Explain Aggregate Fluctuations

Gali, Jordi - 1996

Using data for the G7 countries, I estimate conditional correlations of employment and productivity, based on a decomposition of the two series into technology and non-technology components. The picture that emerges is hard to reconcile with the predictions of the standard Real Business Cycle...

Persistent link: https://www.econbiz.de/10012473117