Publication
Oct 2008
This paper addresses monetary persistence and labor adjustment costs. The authors build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this is sufficient to increase both output and inflation persistence.
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English (PDF, 9 pages, 264 KB) |
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Author | Wolfgang Lechthaler, Dennis Snower |
Series | Kiel Institute Working Papers |
Issue | 1453 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2008 Kiel Institute for the World Economy |