We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are … zero and the optimal volatility of inflation is an increasing function of firing costs. The optimal rule should react to … employment alongside inflation. -- Optimal monetary policy ; hiring and firing costs ; labor market frictions ; policy trade-off …

General equilibrium analyses of layoff costs have had mixed messages on the implications for employment. This paper … effects of layoff costs come through reducing labor reallocation, whereas negative effects come through reducing the private … return to work due to those layoff costs and the associated inefficient allocation of labor. Additional adverse employment …

General equilibrium analyses of layoff costs have had mixed messages on the implications for employment. This paper … effects of layoff costs come through reducing labor reallocation, whereas negative effects come through reducing the private … return to work due to those layoff costs and the associated inefficient allocation of labor. Additional adverse employment …

General equilibrium analyses of layoff costs have had mixed messages on the implications for employment. This paper … effects of layoff costs come through reducing labor reallocation, whereas negative effects come through reducing the private … return to work due to those layoff costs and the associated inefficient allocation of labor. Additional adverse employment …

are more talented than European and American players, there is evidence that they face lower training costs …