The thesis analyzes monetary and labor policies under different market frictions. In the first part several versions of a microfounded dynamic general equilibrium model with monopolistic competitors in the product and/or labor market are derived and simulated. First of all, the monetary...

When unemployment rates reached double-digit levels in many OECD countries at the beginning of the 1990s, fighting unemployment became the prime target of economic policy-making and a major focus of economic research1. The OECD (1994) launched a major study - the OECD Jobs Study - which...