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This paper documents state dependence in labor market fluctuations. Using aThreshold Vector Autoregression model (TVAR), we establish that the unemployment rate, the job separation rate, and the job finding rate exhibit a larger response to productivity shocks during periods with low aggregate...
Persistent link: https://www.econbiz.de/10012179347
All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to …
Persistent link: https://www.econbiz.de/10012770794
. Positively, we find that inflation and unemployment differentials strongly depend on the underlying labor market structures … prices ; inflation differentials ; optimal monetary policy …
Persistent link: https://www.econbiz.de/10003891881
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 …
Persistent link: https://www.econbiz.de/10013317251
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study the transmission mechanism. With matching frictions, wage rigidities have limited effect on inflation dynamics … opposite ways leaving marginal costs and inflation virtually unaffected …
Persistent link: https://www.econbiz.de/10013129895
in order to stabilize inflation. It follows that in response to higher nominal wage rigidity, it is optimal to allow for … smaller fluctuations of unemployment at the expense of larger inflation fluctuations …
Persistent link: https://www.econbiz.de/10013085007
This paper explores the evolution and determinants of public support for the euro since its creation in 1999 until the end of 2017, thereby covering the pre-crisis experience of the euro, the crisis years and the recent recovery. Using uniquely large macro and micro databases and applying...
Persistent link: https://www.econbiz.de/10013208809
marginal costs with respect to output and thus help to account for the observed inertia in inflation …
Persistent link: https://www.econbiz.de/10012734292