This paper reviews recent approaches to modeling the labour market, and assesses their implications for inflation … volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most …

setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence … of real wage rigidities. We show the nature of the tradeoff between inflation and unemployment stabilization, and we draw …We develop a utility based model of fluctuations, with nominal rigidities, and unemployment. In doing so, we combine …

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 …

Central bankers are raising interest rates on the assumption that wage-push inflation may lead to stagflation. This is … not the case. Although unemployment is low, the labor market is not 'tight'. On the contrary, we show that what matters …

; equilibrium unemployment ; inflation target ; Phillips curve ; Lucas critique ; Germany … Abwärtsnominallohnstarrheit vom inflationären Umfeld selbst abhängt und in Phasen mit niedriger Inflation sinkt. -- nominal wage rigidity …

inflation and labor market dynamics. In particular, it fails to generate a Beveridge curve: vacancies and unemployment are … market flows to more realistic values. However, inflation dynamics are only weakly affected by real wage rigidity. This is … marginal cost that is relevant for inflation dynamics via the Phillips curve contains a dynamic component that does not …

model labor market frictions and unemployment explicitly. This chapter describes some of the essential ingredients and …

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 …