Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis J. - 2008
that the employment rate is slow to converge to its steady state value after a monetary shock. Under reasonable … calibrations, the after-effects of a shock continue to exert an effect on the labor market even long after the shock is over. The … sluggishness of the labor market translates to the product market and thus the output effects of the monetary shock become more …