Financial Markets and the Macroeconomy A Keynesian perspective Carl Chiarella, Peter Flaschel, Reiner Franke, and Willi Semmler | 1 Routledge j j j ^ Taylor & Francis Group LONDON AND NEW YORK Contents List of figures xi ...

We estimate a dynamic intertemporal model with non-clearing markets that mimics features of European labour markets, such as sticky nominal wages and sluggish adjustment of employment to shocks for 15 OECD countries. The estimates include a measure for the degree of labour market sluggishness...