learning model appears better suited to capture the gradual wage adjustment of Germany during the 2000s and the one that …

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to … paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a …

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to … paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a …

deviate from the strict inflation targeting since the policy maker faces a typical unemployment/inflation trade-off. In this … matches. Hence optimal monetary policy features unemployment targeting along with inflation targeting … context and unlike a standard New Keynesian model stabilizing inflation is not sufficient to stabilize the marginal cost …

This paper investigates the importance of labor market institutions for inflation and unemployment dynamics. Using the … and their interaction is crucial for the dynamics of inflation and unemployment. We estimate a panel VAR with … deterministically varying coefficients and find that there is a profound difference in the responses of unemployment and inflation to …

inflation and the extent of real wage rigidity but that these effects depend on the definition of reference norms (e.g. how …