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wages and labor market shocks feed into the inflation process. We model search and matching frictions in the labour market …
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This paper explores the impact of country size on labour market flexibility in a monetary union with a common monetary … small countries demand higher labour market flexibility than large countries. Small countries use labour market flexibility … synchronization reduces the need of small countries for additional labour market flexibility …
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wages and labor market shocks feed into the inflation process. We model search and matching frictions in the labour market …
Persistent link: https://www.econbiz.de/10013318057
In the presence of rigid prices, movements in the exchange rate help to absorb external shocks and to reduce changes in net exports. However, they also affect firms’ competitiveness, marginal costs, and labor demand. In countries where labor market institutions hinder wage adjustment (for...
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Do labor market reforms initiated in periods of loose monetary policy yield different outcomes from those that were introduced in periods when monetary tightening prevailed? Since economic theory usually pays attention to the steady state change and ignores business cycle interactions of...
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