model that is able to replicate these facts and thereby allows us to run counterfactual exercises. When we set the wage …

; matching models ; labor market search ; inflation persistence ; real wage rigidity …In this paper we incorporate a labor market with matching frictions and wage rigidities into the New Keynesian business … affect the transmission process of monetary policy. The model allows real wage rigidities to interact with adjustments in …

In this paper we incorporate a labor market with matching frictions and wage rigidities into the New Keynesian business … affect the transmission process of monetary policy. The model allows real wage rigidities to interact with adjustments in … 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 …

In order to explain the joint fluctuations of output, inflation and the labor market, this paper first develops a … significantly lower elasticity of marginal costs with respect to output. This helps to explain the sluggishness of inflation and the … inflation relies on its ability to explain the dynamics of the labor market …

precautionary saving is strong enough, a rise in uncertainty leads to i) a drop in inflation; ii) amplified negative responses of …

model, unemployment benefits affect households' behavior directly, without having to run via the bargained wage. A …

model, unemployment benefits affect households' behavior directly, without having to run via the bargained wage. A …