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Labor turnover costs, workers' heterogeneity and optimal monetary policy

Faia, Ester; Lechthaler, Wolfgang; Merkl, Christian - 2009

We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are … zero and the optimal volatility of inflation is an increasing function of firing costs. The optimal rule should react to … employment alongside inflation. -- Optimal monetary policy ; hiring and firing costs ; labor market frictions ; policy trade-off …

Persistent link: https://www.econbiz.de/10003864487

Monetary persistence and the labor market : a new perspective

Lechthaler, Wolfgang (contributor); … - 2008

introduction of labor turnover costs (such as hiring and firing costs). Assuming that it is costly to hire and fire workers implies …. -- Monetary persistence ; labor market ; hiring and firing costs …

Persistent link: https://www.econbiz.de/10003665644

Macroeconomic volatilities and the labor market : first results from the euro experiment

Merkl, Christian; Schmitz, Tom - 2009

macroeconomic volatilities. In our subsequent empirical estimations, we find that higher labor turnover costs have a statistically … theory. Real wage rigidities do not seem to play much of a role. This result is in line with our employed labor market model … ; macroeconomic volatility ; monetary policy ; firing costs ; unemployment benefits ; replacement rate …

Persistent link: https://www.econbiz.de/10003827228

Labor selection, turnover costs and optimal monetary policy

Faia, Ester; Lechthaler, Wolfgang; Merkl, Christian - 2012 - This version September 2012

Persistent link: https://www.econbiz.de/10011415418

Quadratic labor adjustment costs and the New-Keynesian model

Lechthaler, Wolfgang (contributor); … - 2008

We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show … costs …

Persistent link: https://www.econbiz.de/10003757577

Increasing returns to scale and the long-run Phillips curve

Vaona, Andrea (contributor); Snower, Dennis J. (contributor) - 2006

A growing body of empirical evidence shows that there exists a long-run positive tradeoff between inflation and real macroeconomic activity. Within a New Keynesian framewok, we examine how increasing returns generate a positive long-run relation between inflation and output.

Persistent link: https://www.econbiz.de/10003320766

Unemployment accounts and employment incentives

Brown, Alessio J. G. (contributor); … - 2006

We explore the far-reaching implications of replacing current unemployment benefit (UB) systems by an unemployment accounts (UA) system. Under the UA system, employed people are required to make ongoing contributions to their UAs and the balances in these accounts are available to them during...

Persistent link: https://www.econbiz.de/10003313858

They are even larger! : More (on) puzzling labor market volatilities

Gartner, Hermann; Merkl, Christian; Rothe, Thomas - 2009

This paper shows that the German labor market is more volatile than the US labor market. Specifically, the volatility of the cyclical component of several labor market variables (e.g., the job-finding rate, labor market tightness, and job vacancies) divided by the volatility of labor...

Persistent link: https://www.econbiz.de/10003825019

Real wage rigidities and the cost of disinflations : a comment on Blanchard and Galí

Ascari, Guido (contributor); Merkl, Christian (contributor) - 2007

This paper analyzes the cost of disinflation under real wage rigidities in a micro-founded New Keynesian model. Unlike Blanchard and Galí (2007) who carried out a similar analysis in a linearized framework, we take non-linearities into account. We show that the results change dramatically, both...

Persistent link: https://www.econbiz.de/10003411665

Hyperbolic discounting and the Phillips curve

Graham, Liam (contributor); Snower, Dennis J. (contributor) - 2007

Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with hyperbolic discounting leads to inflation having significant long-run effects on real variables.

Persistent link: https://www.econbiz.de/10003485601