This paper reviews recent approaches to modelling the labour market, and assesses their implications for inflation … data and, so, too volatile inflation. Models with wage stickiness and right-to-manage bargaining, or with firm …

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

employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to …

-specific labour imply a sufficient degree of real rigidity, and so can reproduce inflation dynamics well. However, they imply too … little real rigidity and, so, too volatile inflation, owing to strong responses of marginal wages and hours per employee … the responses of wages, inflation and employment …

which induce smooth inflation also dampen the adjustment of wages in response to shocks. In the search and matching … Phillips curve is that inflation is not only driven by an output gap but also by an employment gap – a feature usually …

result is that the model is able to generate persistent responses in output, inflation, and total labor input to both neutral …

result is that the model is able to generatepersistent responses in output, inflation, and total labor input to both …