Christoffel, Kai; Kuester, Keith; Linzert, Tobias - Institute for the Study of Labor (IZA) - 2005
wages and labor market shocks feed into the inflation process. We model search and matching frictions in the labour market … German data from the mid 70s to present. In our framework, we find that labor market structure is important for the evolution … of the business cycle, and for monetary policy in particular. Yet labor market shocks are not important information for …