Ramsey monetary policy with labour market frictions : [This draft: March 2009]
- Traditional New Keynesian models prescribe that optimal monetary policy should aim at price stability. In the absence of a labor market frictions, the monetary authority faces no unemployment/inflation trade-off. I study the design of optimal monetary policy in a framework with sticky prices and matching frictions in the labor market. Optimal policy features deviations from price stability in response to both productivity and government expenditure shocks. When the Hosios 1990 condition is not met, search externalities make the flexible price allocation unfeasible. Optimal deviations from price stability increase with workers’ bargaining power, as firms´ incentives to post vacancies fall and unemployment fluctuates above the Pareto efficient one.
Volltext Dateien herunterladen
Weitere Dienste
| Verfasserangaben: | Ester FaiaGND |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-356649 |
| URL: | http://www.wiwi.uni-frankfurt.de/profs/faia/welcome_files/jme_ramsey_3ndrevisedr.pdf |
| Dokumentart: | Bericht |
| Sprache: | Englisch |
| Jahr der Fertigstellung: | 2009 |
| Jahr der Erstveröffentlichung: | 2009 |
| Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Datum der Freischaltung: | 27.11.2014 |
| Freies Schlagwort / Tag: | congestion externality; matching frictions; optimal monetary policy |
| Ausgabe / Heft: | draft: March 2009 |
| Seitenzahl: | 38 |
| Bemerkung: | First draft: August 2006. This draft: March 2009 |
| HeBIS-PPN: | 352816449 |
| Institute: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Lizenz (Deutsch): |  Deutsches Urheberrecht |
