Arbeitspapier
A search model of unemployment and inflation
In this paper, I introduce money in the standard labor-matching model (Mortensen and Pissarides 1999, Pissarides 2000). A double coincidence problem makes Fiat Money necessary as a medium of exchange. In the long-run, a rise in the rate of money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal monetary growth rate decreases with the workers' bargaining power, the level of unemployment benefits and the payroll tax rate.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 2194
- Classification
-
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Monetary Policy
Unemployment: Models, Duration, Incidence, and Job Search
- Subject
-
inflation
unemployment
search-matching
Friedman rule
Inflation
Geldmengensteuerung
Arbeitsplatzsuchmodell
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Lehmann, Etienne
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2006
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lehmann, Etienne
- Institute for the Study of Labor (IZA)
Time of origin
- 2006
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