Insider-outsider labor markets, hysteresis and monetary policy
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- dc.contributor.author Galí, Jordi
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2024-11-14T10:09:39Z
- dc.date.available 2024-11-14T10:09:39Z
- dc.date.issued 2015-09-01
- dc.date.modified 2024-11-14T10:05:06Z
- dc.description.abstract I develop a version of the New Keynesian model with insideroutsider labor markets and hysteresis that can account for the high persistence of European unemployment. I study the implications of that environment for the design of monetary policy. The optimal policy calls for strong emphasis on (un)employment stabilization which a standard interest rate rule fails to deliver, with the gap between the two increasing in the degree of hysteresis. Two simple targetiing rules are shown to approximate well the optimal policy. The properties of the model and effects of different policies are analyzed through the lens of the labor wedge and its components.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1506
- dc.identifier.citation Journal of Money, Credit and Banking 54(S1), 53-88, 2022.
- dc.identifier.uri http://hdl.handle.net/10230/26836
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1506
- 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 wage stickiness
- dc.subject.keyword new keynesian model
- dc.subject.keyword unemployment fluctuations
- dc.subject.keyword phillips curve
- dc.subject.keyword monetary policy tradeoffs.
- dc.subject.keyword Macroeconomics and International Economics
- dc.title Insider-outsider labor markets, hysteresis and monetary policy
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper