This paper argues that there is a normative case for delaying policy reform. Policy design in dynamic economies … enough that retaining the status-quo policy in the short term and taking on the reform at a later date is welfare improving …. In a simple New Keynesian economy, I consider monetary policy reform from discretion to the optimal targeting rule. I …

's tradable sector in the aftermath of the Hartz unemployment insurance reform based on firm-level data. Our quantitative model … matches a significant fraction of various macroeconomic trends after the reform, namely Germany's persistent increase of …, and the decline in unemployment. Conversely, Germany's wage moderation before the reform appears to be unrelated to most …

introduction of labor turnover costs (such as hiring and firing costs). Assuming that it is costly to hire and fire workers implies … and firing costs …

stagflationary effects which are dampened by reducing the refinancing costs of the banking sector and by increasing the loan rate …