Article ID Journal Published Year Pages File Type
965787 Journal of Macroeconomics 2011 10 Pages PDF
Abstract
► This paper studies welfare implications of sectoral labor adjustment cost. ► We find that it reduces (increases) welfare under flexible (fixed) exchange rates. ► Sectoral friction can stabilize real economy if monetary policy is ineffective.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Sectoral labor adjustment and monetary policy in a small open economy
Authors
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