| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 966553 | Journal of Monetary Economics | 2012 | 16 Pages |
Abstract
⺠The interactions of nominal rigidities and labor market frictions are investigated. ⺠Tax instruments can implement the first best equilibrium in this environment. ⺠Monetary authorities face trade-offs when these tax instruments are unavailable. ⺠Large labor inefficiencies may call for only small deviations from price stability. ⺠Gains from deviating from price stability are larger with more volatile labor flows.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Federico Ravenna, Carl E. Walsh,