Unemployment as excess supply of labor: Implications for wage and price inflation

• 成果类型: Article
• 署名作者: Casares, Miguel
• 署名单位: Universidad Publica de Navarra
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2009.12.002
• 发表日期: 2010
• 页码: 233-243
• 关键词: Market-clearing wages; Sticky wages; unemployment

摘要

The introduction of both market-clearing wages and nominal rigidities on wage setting call be used to rationalize unemployment as excess supply of labor in the New Keynesian model. As a result, wage inflation dynamics are forward-looking and depend negatively oil the rate of unemployment. Moreover, both price inflation and wage inflation evolve as indicated by equations equivalent to those obtained in Erceg et al. (2000), though with different slope coefficients. In all equal-volatility comparison, the model with unemployment conveys less price stickiness and more wage stickiness. (C) 2009 Elsevier B.V. All rights reserved.