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The (ir)relevance of real wage rigidity for optimal monetary policy

Kohlbrecher, Britta - 2019

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 …

Persistent link: https://www.econbiz.de/10012119333

Job Heterogeneity and Aggregate Labor Market Fluctuations

Krolikowski, Pawel Michal - 2019

This paper disciplines a model with search over match quality using microeconomic evidence on worker mobility patterns and wage dynamics. In addition to capturing these individual data, the model provides an explanation for aggregate labor market patterns. Poor match quality among first jobs...

Persistent link: https://www.econbiz.de/10012893537

u* = √uv

Michaillat, Pascal; Saez, Emmanuel - National Bureau of Economic Research - 2022

Most governments are mandated to maintain their economies at full employment. We propose that the best marker of full employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of labor--both jobseeking and recruiting. The...

Persistent link: https://www.econbiz.de/10013334429

Sequential Bargaining in a New Keynesian Model with Frictional Unemployment and Staggered Wage Negotiation

de Walque, Gregory - 2010

inflation persistence. The closer to zero this parameter, (i) the more firms tend to adjust on the intensive margin, reducing … wage in determining the marginal cost. This set-up produces realistic labour market figures together with inflation …

Persistent link: https://www.econbiz.de/10013137698

Staggered wages, sticky prices, and labor market dynamics in matching models

Neugebauer, Janett; Wesselbaum, Dennis - 2010

This paper investigates the role of staggered wages and sticky prices in explaining stylized labor market facts. We build on a partial equilibrium search and matching model and expand the model to a general equilibrium model with sticky prices and/or staggered wages. We show that the core model...

Persistent link: https://www.econbiz.de/10003948565

On the determinacy of new Keynesian models with staggered wage and price setting

Proaño Acosta, Christian; Franke, Reiner; Flaschel, Peter - 2008

this model type, where a generalized Taylor rule that employs a weighted combination of wage and price inflation is used as … a measure for the inflation gap. … Inflation-Gap verwendet wird. …

Persistent link: https://www.econbiz.de/10003747656

Virtually everywhere? : digitalisation and the euro area and EU economies : degree, effects, and key issues

Anderton, Bob; Jarvis, Valerie; Labhard, Vincent; … - 2020

Digitalisation can be viewed as a major supply/technology shock affecting macroeconomic aggregates that are important for monetary policy, such as output, productivity, investment, employment and prices. This paper takes stock of developments in the digital economy and their possible impacts...

Persistent link: https://www.econbiz.de/10012254362

Labor market institutions and the business cycle : unemployment rigidities vs. real wage rigidities

Abbritti, Mirko; Weber, Sebastian - 2010

This paper investigates the importance of labor market institutions for inflation and unemployment dynamics. Using the … and their interaction is crucial for the dynamics of inflation and unemployment. We estimate a panel VAR with … deterministically varying coeficients and find that there is a profound difference in the responses of unemployment and inflation to …

Persistent link: https://www.econbiz.de/10003972885

What can a New Keynesian labor matching model match?

Reicher, Christopher Phillip - 2009

1980s. Based on the timing of observed fluctuations in interest rates, inflation, and productivity, it appears that the …. -- Unemployment ; labor market search ; job flows ; labor share ; inflation ; productivity shocks ; monetary shocks …

Persistent link: https://www.econbiz.de/10003826579

Labour Market Institutions and Aggregate Fluctuations in a Search and Matching Model

Zanetti, Francesco - 2008

. Hence, firms adjust to shocks mainly through prices, and inflation then becomes more volatile. Raising unemployment benefits …

Persistent link: https://www.econbiz.de/10014221318