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Following Driscoll and Holden (2004), I model forward-looking workers who consider it unfair if a wage adjustment fails to match past inflation. However, the present paper proposes a much larger effect by using the job finding rate as the measure of workers' opportunities outside the firm rather...
Persistent link: https://www.econbiz.de/10010379902
Inflation volatility is clearly important for structural analysis, forecasting and policy purposes, yet it is often overlooked in the literature. This paper compares inflation volatility among advanced open economies with inflation targeting monetary policy frameworks. The results of the...
Persistent link: https://www.econbiz.de/10012827759
I create a model where interest rates are rigid, but aggregate prices are flexible. As a result, changes in real interest rates lead to changes to inflation in the opposite direction. I conclude that this is how credit crunches and monetary tightening reduce inflation. I simulate different...
Persistent link: https://www.econbiz.de/10013006391
This study deals with the question whether the central banks of Sweden, Denmark and the UK can really influence short … case of adverse monetary shocks to the economy for Sweden and Denmark, compared to the Euro area. We conclude that the … zum Euroraum unterschiedliche Risikoentwicklung und instabile Volatilitäten des Risikos, wenn Schweden und Dänemark …
Persistent link: https://www.econbiz.de/10009162063
effects are also relatively well in accordance with what could be expected from life-cycle theory. In the forecasting exercise … equal in merit with a general VAR model that has been used by the Riksbank (Bank of Sweden). We conclude that the source of …
Persistent link: https://www.econbiz.de/10011588176
We construct a model of a financially constrained firm making pricing and investment decisions. The firm operates in a market where customers respond slowly to price changes and there are implementation lags in investment (time to build). Our model implies that the markup over marginal cost is...
Persistent link: https://www.econbiz.de/10011589258
exchange rate following a certain exogenous shock, with a structural econometric approach using data for Sweden, a small … standard structural macroeconomic models would indicate. For Sweden, the CERPT is negative not only for domestic but also for …
Persistent link: https://www.econbiz.de/10011806006
inflation and its uncertainty using monthly data for Germany, the Netherlands and Sweden over a period ranging from 1962 to 2004 … uncertainty affects inflation in all countries but not in the same manner. For Sweden we find a negative impact in accordance with …
Persistent link: https://www.econbiz.de/10012729754
We construct a model of a financially constrained firm making pricing and investment decisions. The firm operates in a market where customers respond slowly to price changes and there are implementation lags in investment (time to build). Our model implies that the markup over marginal cost is...
Persistent link: https://www.econbiz.de/10014116772
output for the Euro area, the United States, Sweden, Australia, and the United Kingdom. Particular attention is paid to time …
Persistent link: https://www.econbiz.de/10013316896