volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most … promising candidates. -- Inflation Dynamics ; Labour Market ; Business Cycle ; Real Rigidities …

degree of wage rigidity makes monetary policy more effective, i.e. a monetary policy shock transmits faster onto inflation … fluctuations. Our results point primarily towards disturbances in the bargaining process as a significant contributor to inflation …

This paper investigates the importance of labor market institutions for inflation and unemployment dynamics. Using the … and their interaction is crucial for the dynamics of inflation and unemployment. We estimate a panel VAR with … deterministically varying coeficients and find that there is a profound difference in the responses of unemployment and inflation to …

into account. - Inflation Persistence ; RealWage Rigidity ; NominalWage Rigidity ; DSGE models; Staggered Contracts …

period. The workers' bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence … cost determination. This set-up produces realistic labor market statistics together with inflation persistence …

inflation and the extent of real wage rigidity but that these effects depend on the definition of reference norms (e.g. how … leadership (i.e. asymmetries in reference norms). -- Inflation Persistence ; Real Wage Rigidity ; Staggered Contracts ; Wage …

In order to explain the joint fluctuations of output, inflation and the labor market, this paper first develops a … general equilibrium model that integrates a theory of equilibrium unemployment into a monetary model with nominal price … helps to explain the sluggishness of inflation and the persistence of output after a monetary policy shock. The ability of …

the tradeable sector. They also suggest that the sales destination matters: wage growth contributes to domestic inflation … for goods but not to export inflation. Finally, we also provide evidence of an increase in the wage-price pass …

inflation targeting. For each rule we distinguish between cases with zero weight on the unemployment gap and a negative response … inflation. Responding to unemployment reduces cross-country differences within the monetary union and the differences in …