The role of real wage rigidity and labor market frictions for unemployment and inflation dynamics /

In this paper we incorporate a labor market with matching frictions and wage rigidities into the New Keynesian business cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions affect the transmission process of monetary policy. The mode...

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Bibliographic Details
Main Author: Christoffel, Kai
Other Authors: Linzert, Tobias
Format: Book
Language:English
Published: Frankfurt am Main : Deutsche Bundesbank, 2006
Series:Discussion paper (Deutsche Bundesbank). Series 1: economic studies ; no. 11/2006
Subjects:
Online Access:http://www.bundesbank.de/Redaktion/EN/Downloads/Publications/Discussion_Paper_1/2006/2006_03_14_dkp_11.pdf?__blob=publicationFile