Publication
Mar 2009
This paper examines the role of labor markets for monetary policy in the euro area. The authors apply a New Keynesian model in which labor markets are characterized by search and matching frictions. They investigate to which extent a more flexible labor market would alter the business cycle behavior and the transmission of monetary policy. The paper also examines whether the labor market is an important source of business cycle shocks.
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English (PDF, 58 pages, 783 KB) |
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Author | Kai Christoffel, Keith Kuester, Tobias Linzert |
Series | Kiel Institute Working Papers |
Issue | 1513 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2009 Kiel Institute for the World Economy |