Similar Search Results

Real Wage Rigidities and Disinflation Dynamics: Calvo vs. Rotemberg Pricing

Ascari, Guido; Rossi, Lorenza - 2010

Calvo pricing implies output gains, while Rotemberg pricing implies output losses after a disinflation. Introducing real wage rigidities has opposite effects: it generates a long-lasting boom in output in Calvo, and a moderate output slump in Rotemberg.

Persistent link: https://www.econbiz.de/10010343894

Real Wage Rigidities and the New Keynesian Model

Blanchard, Olivier J.; Galí, Jordi - 2006

provides a natural interpretation for the dynamic inflation - unemployment relation found in the data …Most central banks perceive a trade-off between stabilizing inflation and stabilizing the gap between output and … inflation is equivalent to stabilizing the welfare-relevant output gap. In this paper, we argue that this property of the new …

Persistent link: https://www.econbiz.de/10014061493

Sequential bargaining in a new-Keynesian model with frictional unemployment and staggered wage negotiation

De Walque, Gregory; Pierrard, Olivier; Sneessens, Henri R. - 2009

period. The workers' bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence … the new entrants wage rigidity required to match observed unemployment volatility. -- DSGE ; Search and Matching ; Nominal …We consider a model with frictional unemployment and staggered wage bargaining where hours worked are negotiated every …

Persistent link: https://www.econbiz.de/10003831761

Sequential bargaining in a new-Keynesian model with frictional unemployment and staggered wage negotiation

De Walque, Gregory; Pierrard, Olivier; Sneessens, Henri; … - 2009

period. The workers' bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence … the new entrants wage rigidity required to match observed unemployment volatility. -- DSGE ; search and matching ; nominal …We consider a model with frictional unemployment and staggered wage bargaining where hours worked are negotiated every …

Persistent link: https://www.econbiz.de/10003824877

Sequential bargaining in a New Keynesian model with frictional unemployment and staggered wage negotiation

De Walque, Gregory; Pierrard, Olivier; Sneessens, Henri R. - 2009

Persistent link: https://www.econbiz.de/10003809217

How should central banks react to household inflation heterogeneity?

Neyer, Ulrike; Stempel, Daniel - 2022

of the households' consumer price inflation rates or their individual rates, respectively. After a negative demand shock … higher inflation rate mitigates the immediate effects of the shock on both consumer price inflation rates more effectively …Empirical evidence suggests that considerable differentials in inflation rates exist across households. This paper …

Persistent link: https://www.econbiz.de/10012803661

Nominal v. Real Wage Rigidities in New Keynesian Models with Hiring Costs : A Bayesian Evaluation

Riggi, Marianna; Tancioni, Massimiliano - 2011

The introduction of labor market frictions into the New Keynesian DSGE model solves some of the main drawbacks of the baseline framework. In this paper we show that this extended model, by assuming real wage rigidities, fails to replicate the correct wage dynamics and the observed negative...

Persistent link: https://www.econbiz.de/10014223148

Financial frictions : micro vs. macro volatility

Faccini, Renato; Lee, Seungcheol; Luetticke, Ralph; … - 2024

Consumer credit spreads significantly impact consumption and asset dynamics, affecting indebted households' spending behavior and the income sensitivity of consumption. Analyzing Danish data, we find that elevated credit spreads reduce consumption of indebted households. Our results suggest that...

Persistent link: https://www.econbiz.de/10014480275

Racial unemployment gaps and the disparate impact of the inflation tax

Ait Lahcen, Mohammed; Baughman, Garth; Buggenum, Hugo van - 2023

, we study the implications of different inflation regimes on the racial unemployment gap. Higher trend inflation increases … facing exogenous differences in the job finding and separation rates. We use our setting to study the racial unemployment gap … two groups both in the level and volatility of unemployment. We show that the racial unemployment gap is counter …

Persistent link: https://www.econbiz.de/10014283315

The role of labor markets for euro area monetary policy

Christoffel, Kai; Küster, Keith; Linzert, Tobias - 2009

degree of wage rigidity makes monetary policy more effective, i.e. a monetary policy shock transmits faster onto inflation … which labor markets are characterized by search and matching frictions. We first investigate to which extent a more flexible … fluctuations. Our results point primarily towards disturbances in the bargaining process as a significant contributor to inflation …

Persistent link: https://www.econbiz.de/10003832582