Record number :
846339
Title of article :
Labor marketreformandpricestability:Anapplicationtothe EuroArea
Author/Authors :
CarlosThomas، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2008
Pages :
15
From page :
885
To page :
899
Abstract :
Centralbankersfrequentlysuggestthatlabormarketreformmaybebeneficialfor inflationmanagement.Thispaperinvestigatesthistopicbysimulatingtheeffectsof reductions infiringcostsandunemploymentbenefitsoninflationvolatilityintheEuro Area, usinganestimatedNewKeynesianmodelwithsearchandmatchingfrictions. Qualitatively,changesinlabormarketpoliciesalterthevolatilityofinflationinresponse to shocks,byaffectingthevolatilityofthethreecomponentsofrealmarginalcosts (hiringcosts,firingcostsandwagecosts).Quantitatively,wefind,however,thatneither policy islikelytohaveanimportanteffectoninflationvolatility,duetothesmall contributionofhiringandfiringcoststoinflationdynamics
Keywords :
Labor marketpoliciesSearch andmatchingfrictionsNewKeynesianmodel
Journal title :
Journal of Monetary Economics
Serial Year :
2008
Link To Document :
بازگشت