Arbeitspapier
The Taylor principle and (in-)determinacy in a New Keynesian model with hiring frictions and skill loss
We introduce skill decay during unemployment into Blanchard and Gali's (2008) New-Keynesian model with hiring frictions and real-wage rigidity. Plausible values of quarterly skill decay and real-wage rigidity turn the long-run marginal cost-unemployment relationship positive in a "European" labour market with little hiring but not in a fluid "American" one. If the marginal cost-unemployment relationship is positive, determinacy requires a passive response to inflation in the central bank's interest feedback rule if the rule features only inflation. Targeting steady state output or unemployment helps to restore determinacy. Under indeterminacy, an adverse sunspot shock increases unemployment extremely persistently.
- Sprache
-
Englisch
- Erschienen in
-
Series: NBB Working Paper ; No. 208
- Klassifikation
-
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Monetary Policy
Business Fluctuations; Cycles
Unemployment: Models, Duration, Incidence, and Job Search
- Thema
-
Monetary policy rules
Taylor principle
Determinacy
Hysteresis
Skill decay
Arbeitslosigkeit
Qualifikation
Humankapital
Hysterese
Geldpolitik
Inflationsrate
Taylor-Regel
Keynesianismus
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Rannenberg, Ansgar
- Ereignis
-
Veröffentlichung
- (wer)
-
National Bank of Belgium
- (wo)
-
Brussels
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Rannenberg, Ansgar
- National Bank of Belgium
Entstanden
- 2010
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