In this paper we incorporate a labor market with matching frictions and wage …

persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation … employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … ; matching models ; labor market search ; inflation persistence ; real wage rigidity …

This paper investigates the importance of labor market institutions for inflation and unemployment dynamics. Using the … and their interaction is crucial for the dynamics of inflation and unemployment. We estimate a panel VAR with … deterministically varying coefficients and find that there is a profound difference in the responses of unemployment and inflation to …

persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation … employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to …In this paper we incorporate a labor market with matching frictions and wage rigidities into the New Keynesian business …

persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation … employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to …In this paper we incorporate a labor market with matching frictions and wage rigidities into the New Keynesian business …

Real wage rigidity is known to create a substantial trade-off between inflation and employment stabilization for …, monetary policy with a single focus on inflation stabilization is close to optimal. The reason is twofold: Firms cushion the …

persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation … employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to …In this paper we incorporate a labor market with matching frictions and wage rigidities into the New Keynesian business …

for the unemployment-inflation trade- off and for the conduct of monetary policy. We proceed in two steps. We first leave … firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence of labor … market frictions and real wage rigidities. We show the nature of the tradeoff between inflation and unemployment …

We consider a model with frictional unemployment and staggered wage bargaining where hours worked are negotiated for … each period. The workers' bargaining power in the working time negotiations affects both unemployment volatility and … inflation persistence. The closer to zero this parameter, (i) the more firms tend to adjust on the intensive margin, reducing …

period. The workers' bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence …We consider a model with frictional unemployment and staggered wage bargaining where hours worked are negotiated every … cost determination. This set-up produces realistic labor market statistics together with inflation persistence …