Optimal monetary policy rules with labor market frictions
نویسندگان
چکیده
منابع مشابه
Liquidity, Credit Frictions, and Optimal Monetary Policy
We study optimal monetary policy in a NewMonetarist framework with banking, private liquidity, and credit frictions.We show that whenever part of the decentralized transactions are allowed to use deposit claims backed by interest-bearing assets, the optimal policy is a non-Friedman-rule liquidity trap. In contrast, the Friedman rule is optimal if there are no credit frictions, or if the economy...
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In the wake of a severe recession and a sluggish recovery, labor market slack cannot be gauged solely in terms of the conventional measure of the unemployment rate (that is, the number of individuals who are not working at all and actively searching for a job). Rather, assessments of the employment gap should reflect the incidence of underemployment (that is, people working part-time who want a...
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ژورنال
عنوان ژورنال: Journal of Economic Dynamics and Control
سال: 2008
ISSN: 0165-1889
DOI: 10.1016/j.jedc.2007.06.011