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surrounding the effects of rule-based monetary policy on unemployment dynamics in the euro area and the US. We employ a Bayesian … policy ; model uncertainty ; Bayesian model averaging ; unemployment gap ; Taylor rule …
Persistent link: https://www.econbiz.de/10003963762
We estimate business cycle regime switching logit models for G7 countries to determine the effect of duration of the … falls into a recession. We also find that expansions in the US and Germany are duration dependent, i.e. are more likely to … end as they grow older. This contrasts with other G7 countries where expansions are not duration dependent. With respect …
Persistent link: https://www.econbiz.de/10011937263
We evaluate the effects of permanently reducing labour tax rates in the euro area (EA) by simulating a large-scale open economy dynamic general equilibrium model. The model features the EA as a monetary union, split in two regions (Home and the rest of the EA - REA), the US, and the rest of the...
Persistent link: https://www.econbiz.de/10011792134
The business cycle is alive and well, and real variables respond to it more or less as they always did. Witness the Great Recession. In ation, in contrast, has gone quiescent. This paper studies the sources of this disconnect using VARs and an estimated DSGE model. It finds that the disconnect...
Persistent link: https://www.econbiz.de/10012241237
Persistent link: https://www.econbiz.de/10001554418
This paper analyses how labour market heterogeneity affects unemployment, productivity and business cycle dynamics that … skilled workers increases the natural rate of unemployment and reduces total factor productivity with long- run effects on the … Beveridge curves. Skill-specific labour market heterogeneity leads to a attening of the Phillips curve as wages and unemployment …
Persistent link: https://www.econbiz.de/10012880717
paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a … reasonable elasticity of steady state unemployment with respect to changes in benefits. The calibration of the model implies low …
Persistent link: https://www.econbiz.de/10003789409
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/10003396811
with a SVAR model by inspecting how unemployment responds to the state of the economy. We show that deviations from Okun …
Persistent link: https://www.econbiz.de/10013332832
Persistent link: https://www.econbiz.de/10001490967