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 reviews recent approaches to modeling the labour market, and assesses their implications for inflation … dynamics through both their effect on marginal cost and on price-setting behavior. In a search and matching environment, we … volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most …

.ation dynamics through both their effect on marginal cost and on price-setting behaviour. In a search and matching environment, we … volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most … promising candidates. -- Inflation Dynamics ; Labour Market ; Business Cycle ; Real Rigidities …

This paper reviews recent approaches to modeling the labour market, and assesses their implications for inflation … dynamics through both their effect on marginal cost and on price-setting behavior. In a search and matching environment, we … volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most …

This paper reviews recent approaches to modeling the labour market and assesses their implications for inflation … dynamics through both their effect on marginal cost and on price-setting behavior. In a search and matching environment, we … volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most …

This paper reviews recent approaches to modeling the labour market and assesses their implications for inflation … dynamics through both their effect on marginal cost and on price-setting behaviour. In a search and matching environment, we … volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most …

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 …

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 …