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The Impact of Labor Markets on the Transmission of Monetary Policy in an Estimated DSGE Model

Christoffel, Kai; Kuester, Keith; Linzert, Tobias - 2021

Real wages are a key determinant of marginal costs. The latter themselves are a driving force of inflation. We ask how wages and labor market shocks feed into the inflation process. We model search and matching frictions in the labour market in an otherwise standard New-Keynesian closed economy...

Persistent link: https://www.econbiz.de/10013318057

Causal Effects of Monetary Shocks : Semiparametric Conditional Independence Tests with a Multinomial Propensity Score

Angrist, Joshua D.; Kuersteiner, Guido M. - 2021

dependent data and allowing for first-step estimation of the propensity score …

Persistent link: https://www.econbiz.de/10013325071

Assessing Australian Monetary Policy in the Twenty-First Century

Gross, Isaac; Leigh, Andrew - 2022

Using the Reserve Bank of Australia's MARTIN model we compare actual monetary policy decisions to a counterfactual in which the cash rate is set according to an optimal simple rule. We find that monetary policy played a crucial role in avoiding a potential recession in 2001 and mitigating the...

Persistent link: https://www.econbiz.de/10014076715

Distributional Effects of Monetary Policy in Emerging Market Economies

Prasad, Eswar S. - 2015

We develop a two-sector, heterogeneous-agent model with incomplete financial markets to study the distributional effects and aggregate welfare implications of alternative monetary policy rules in emerging market economies. Relative to inflation targeting, exchange rate management benefits...

Persistent link: https://www.econbiz.de/10013016221

Design Choices for Central Bank Digital Currency : Policy and Technical Considerations

Allen, Sarah - 2020

Central banks around the world are exploring and in some cases even piloting Central Bank Digital Currencies (CBDCs). CBDCs promise to realize a broad range of new capabilities, including direct government disbursements to citizens, frictionless consumer payment and money-transfer systems, and a...

Persistent link: https://www.econbiz.de/10012827328

Labor Turnover Costs, Workers' Heterogeneity, and Optimal Monetary Policy

Faia, Ester - 2009

We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are set according to a right to manage bargaining where the firms' counterpart is given by currently employed workers. Our model captures well the salient features of European labor...

Persistent link: https://www.econbiz.de/10013157529

Assessing the Impact of Incomes Policy : The Italian Experience

Pastore, Francesco - 2010

The Saint Valentine's decree (1984) and the ensuing hard fought referendum (1985), which reduced the automatisms of scala mobile, started a process of redefinition of wage fixing in Italy, which culminated with the final abolition of scala mobile (1992) and the approval of Protocollo d'intesa...

Persistent link: https://www.econbiz.de/10013139721

Monetary Persistence, Imperfect Competition, and Staggering Complementarities

Merkl, Christian; Snower, Dennis J. - 2021

This paper explores the influence of wage and price staggering on monetary persistence. We show that, for plausible parameter values, wage and price staggering are complementary in generating monetary persistence. We do so by proposing the new measure of quantitative inertia, after discussing...

Persistent link: https://www.econbiz.de/10013316832

Inequality Indices as Tests of Fairness

Kanbur, Ravi - 2017

Standard income inequality indices can be interpreted as a measure of welfare loss entailed in departures from equality … to Theil's first and second inequality indices respectively. The LR values may either be used as a test statistic or to …. The answer to the process versus outcomes critique is thus not to stop calculating inequality measures, but to interpret …

Persistent link: https://www.econbiz.de/10012957494

Social Spending Generosity and Income Inequality : A Dynamic Panel Approach

Niehues, Judith - 2010

This paper explores if more generous social spending polices in fact lead to less income inequality, or if … with regard to inequality levels, I apply the System GMM estimator and use the presumably random incidence of certain … reduces inequality levels. The result is robust with respect to the instrument count and different data restrictions. Looking …

Persistent link: https://www.econbiz.de/10013138256