Title of article
Monetarypolicyandlabormarketfrictions:Ataxinterpretation
Author/Authors
Federico Ravenna، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2012
Pages
16
From page
180
To page
195
Abstract
Replicatingtheflexiblepriceallocationinmodelswithnominalrigiditiesandlabor
marketfrictionsthatleadtoaninefficientmatchingofunemployedworkerswithjob
vacancies,eveniffeasible,isgenerallynotdesirable.Wecharacterizethetaxinstru-
mentsthatimplementthefirstbestallocationandexaminethetrade-offsfacedby
monetarypolicyifthesetaxinstrumentsareunavailable.Ourtaxinterpretationhelps
explainwhythewelfarecostofinefficientlabormarketsearchcanbelargewhilethe
incentivetodeviatefrompricestabilityissmall.Gainsfromdeviatingfromprice
stabilityarelargerineconomieswithmorevolatilelaborflows
Journal title
Journal of Monetary Economics
Serial Year
2012
Journal title
Journal of Monetary Economics
Record number
846516
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