Labor market frictions and optimal steady-state inflation

• 成果类型: Article
• 署名作者: Carlsson, Mikael; Westermark, Andreas
• 署名单位: Uppsala University; Sveriges Riksbank; Sveriges Riksbank
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.01.002
• 发表日期: 2016
• 页码: 67-79
• 关键词: Optimal monetary policy; inflation; labor market frictions

摘要

In central theories of monetary non-neutrality, the Ramsey optimal steady-state inflation rate varies between the negative of the real interest rate and zero. This paper explores how the interaction of nominal wage and search and matching frictions affect the policy prescription. We show that adding the combination of such frictions to the canonical monetary model can generate an optimal inflation rate that is significantly positive. Specifically, for a standard U.S. calibration, we find a Ramsey optimal inflation rate of 1.16 percent per year. (C) 2016 Elsevier B.V. All rights reserved.