Gains from wage flexibility and the zero lower bound
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- dc.contributor.author Billi, Roberto M.
- dc.contributor.author Galí, Jordi, 1961-
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2020-05-25T09:27:10Z
- dc.date.available 2020-05-25T09:27:10Z
- dc.date.issued 2018-12-01
- dc.date.modified 2020-05-25T09:25:44Z
- dc.description.abstract We analyze the welfare impact of greater wage flexibility while taking into account explicitly the existence of the zero lower bound (ZLB) constraint on the nominal interest rate. We show that the ZLB constraint generally amplifies the adverse effects of greater wage flexibility on welfare when the central bank follows a conventional Taylor rule. When demand shocks are the driving force, the presence of the ZLB implies that an increase in wage áexibility reduces welfare even under the optimal monetary policy with commitment.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1625
- dc.identifier.citation
- dc.identifier.uri http://hdl.handle.net/10230/44797
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1625
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword labor market
- dc.subject.keyword flexibility
- dc.subject.keyword nominal rigidities
- dc.subject.keyword optimal monetary policy with commitment
- dc.subject.keyword taylor rule
- dc.subject.keyword zlb
- dc.subject.keyword Macroeconomics and International Economics
- dc.title Gains from wage flexibility and the zero lower bound
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper