Monetary policy and labor market frictions: A tax interpretation
成果类型：
Article
署名作者：
Ravenna, Federico; Walsh, Carl E.
署名单位：
University of California System; University of California Santa Cruz
刊物名称：
JOURNAL OF MONETARY ECONOMICS
ISSN/ISSBN：
0304-3932
DOI：
10.1016/j.jmoneco.2012.01.003
发表日期：
2012
页码：
180-195
关键词：
摘要：
Replicating the flexible price allocation in models with nominal rigidities and labor market frictions that lead to an inefficient matching of unemployed workers with job vacancies, even if feasible, is generally not desirable. We characterize the tax instruments that implement the first best allocation and examine the trade-offs faced by monetary policy if these tax instruments are unavailable. Our tax interpretation helps explain why the welfare cost of inefficient labor market search can be large while the incentive to deviate from price stability is small. Gains from deviating from price stability are larger in economies with more volatile labor flows. (C) 2012 Elsevier B.V. All rights reserved.
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