Publication
Mar 2009
This paper examines determinacy and stability under learning (E-stability) of rational expectations equilibria in the New Keynesian model of inflation and unemployment, where labor market frictions due to costs of hiring workers play an important role. The authors derive results for alternative specifications of monetary policy rules and alternative values of hiring costs as a percentage of GDP.
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English (PDF, 19 pages, 883 KB) |
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Author | Mewael F Tesfaselassie, Eric Schaling |
Series | Kiel Institute Working Papers |
Issue | 1506 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2009 Kiel Institute for the World Economy |