Disinflation with labor market frictions

This paper studies disinflationary shocks in a non-linear New Keynesian model with search and matching frictions and moral hazard in the labor markets. Our focus is on understanding the wage formation process as well as welfare costs of disinflations in the presence of such labor market frictions.

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Year of publication:	2014
Authors:	Shin, Jong Kook ; Subramanian, Chetan
Published in:	Journal of Macroeconomics. - Elsevier, ISSN 0164-0704. - Vol. 41.2014, C, p. 1-15
Publisher:	Elsevier
Subject:	Disinflation \| Labor market frictions \| Welfare costs

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Type of publication:	Article
Classification:	E24 - Employment; Unemployment; Wages ; E31 - Price Level; Inflation; Deflation ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010907073