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The Taylor principle and (in-) determinacy with hiring frictions and skill loss

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The Taylor Principle and (In-)Determinacy in a New Keynesian Model with Hiring Frictions and Skill Loss

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We introduce skill decay during unemployment into Blanchard and Gali's (2008) New-Keynesian model with hiring frictions and real-wage rigidity. Plausible values of quarterly skill decay and realwage rigidity turn the long-run marginal cost-unemployment relationship positive in a "European"...

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Persistent link: https://www.econbiz.de/10008698478

The Taylor principle and (in-)determinacy in a New Keynesian model with hiring frictions and skill loss

Rannenberg, Ansgar - 2010

We introduce skill decay during unemployment into Blanchard and Gali's (2008) New-Keynesian model with hiring frictions and real-wage rigidity. Plausible values of quarterly skill decay and real-wage rigidity turn the long-run marginal cost-unemployment relationship positive in a "European"...

Persistent link: https://www.econbiz.de/10011596398