Is there a persistence problem? Part 2: Maybe not

In Part 1 of this two-part series, Evan Koenig explains why some economists are skeptical that staggered price adjustment can account for monetary policy's sustained effects on aggregate economic activity. In Part 2, Koenig looks at labor-market imperfections as a possible source of persistence. He concludes that persistence is much easier to obtain if either labor cannot move freely from firm to firm or wages are set in overlapping wage contracts.

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Year of publication:	2000
Authors:	Koenig, Evan F.
Published in:	Economic and Financial Policy Review. - Federal Reserve Bank of Dallas. - 2000, Q IV, p. 11-19
Publisher:	Federal Reserve Bank of Dallas
Subject:	Monetary policy \| Employment (Economic theory)

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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