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deviate from the strict inflation targeting since the policy maker faces a typical unemployment/inflation trade-off. In this … (hence the output gap) since the latter also depends on the evolution of unemployment. The matching frictions add a … matches. Hence optimal monetary policy features unemployment targeting along with inflation targeting …
Persistent link: https://www.econbiz.de/10013317347
differences in labor market institutions across the same set of countries. It does that by using a DSGE model for a currency area … with sticky prices and labor market frictions. We show that differences in labor market institutions account well for … cyclical inflation differentials. The proposed mechanism is a supply side one in which differences in labor market institutions …
Persistent link: https://www.econbiz.de/10013317627
differences in labor market institutions across the same set of countries. It does that by using a DSGE model for a currency area … with sticky prices and labor market frictions. We show that differences in labor market institutions account well for … cyclical inflation differentials. The proposed mechanism is a supply side one in which differences in labor market institutions …
Persistent link: https://www.econbiz.de/10011604665
unemployment/inflation trade-off. In response to productivity shocks optimal policy is pro-cyclical when the worker's bargaining …
Persistent link: https://www.econbiz.de/10012778042