Zanetti, Francesco; Mumtaz, Haroon - Department of Economics, Oxford University - 2013
This paper embeds labor market search frictions into a New Keynesian model with financial frictions as in Bernanke … empirical fit of the model. The effect of the interaction between labor and financial frictions on aggregate fluctuations … amplify the effect of financial frictions since robust changes in hiring lead to persistent movements in employment and the …