Labor Markets and Monetary Policy: A New Keynesian Model with Unemployment

• 成果类型: Article
• 署名作者: Blanchard, Olivier; Gali, Jordi
• 署名单位: Massachusetts Institute of Technology (MIT); Pompeu Fabra University; Centre de Recerca en Economia Internacional (CREI); Centre for Economic Policy Research - UK; Barcelona School of Economics
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.2.2.1
• 发表日期: 2010
• 页码: 1-30
• 关键词: equilibrium unemployment; inflation dynamics; cyclical behavior; Wage stickiness; sticky prices; search; frictions; fluctuations; VACANCIES

摘要

We construct a utility-based model of fluctuations with nominal rigidities and unemployment. We first show that under a standard utility specification, productivity shocks have no effect on unemployment in the constrained efficient allocation. That property is also shown to hold, despite labor market frictions, in the decentralized equilibrium under flexible prices and wages. Inefficient unemployment fluctuations arise when we introduce real-wage rigidities. As a result, in the presence of staggered price setting by firms, the central bank faces a trade-off between inflation and unemployment stabilization, which depends on labor market characteristics. We draw the implications for optimal monetary policy.