Credit Crunch and Downward Nominal Wage Rigidities
نویسندگان
چکیده
Through the lens of a DSGE model, I find that financial shocks in conjunction with downward nominal wage rigidities (DNWR) are important features explaining degree asymmetry U.S. business cycles exhibit. Financial constructed as residuals borrowing constraint faced by firms similar fashion to Jermann and Quadrini (2012). The effects these on aggregate quantity variables amplified DNWR, especially during global crisis. Moreover, my model explains large part upward shift labor wedge occurred this recession.
منابع مشابه
Imperfect Capital Markets and Nominal Wage Rigidities
Working papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views stated herein are those of the authors and are not necessarily those of the Federal Reserve Bank...
متن کاملMacroeconomic implications of Downward Wage Rigidities∗
Growth of unemployment, employment, vacancies and wages exhibit strong asymmetries between expansionary and contractionary phases of the business cycle. This is also very apparent during the crisis of 2008-2009 for the US and European countries. In this paper we analyse to what degree downward wage rigidities in the bargaining process affect other variables of the labour market, output, inflati...
متن کاملNominal and real wage rigidities. In theory and in Europe
In this paper I study the relation between real wage rigidity (RWR) and nominal price and wage rigidities. I show that in a standard DSGE model RWR is mainly affected by the two nominal rigidities and not by the other structural parameters. The degree of RWR is, however, considerably influenced by the modelling assumption (e.g. Calvo vs. Taylor wage contracts and the clustering of contracts). I...
متن کاملA Study of Downward Nominal Wage Rigidity in Korea
This paper examines downward nominal wage rigidity in Korea using aggregate and individual-level data. We find that the degree of downward nominal wage rigidity differs depending on the data sources used. Results from the aggregate data indicate that, on average, wages have been flexible. By contrast, evidence from the micro data suggests that nominal wages are downwardly rigid most of the time...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Money, Credit and Banking
سال: 2022
ISSN: ['1538-4616', '0022-2879']
DOI: https://doi.org/10.1111/jmcb.12962