Christoffel, Kai; Kuester, Keith; Linzert, Tobias - 2009
degree of wage rigidity makes monetary policy more effective, i.e. a monetary policy shock transmits faster onto inflation … fluctuations. Our results point primarily towards disturbances in the bargaining process as a significant contributor to inflation …In this paper, we explore the role of labor markets for monetary policy in the euro area in a New Keynesian model in …