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dc.contributor.authorBlanchard, Olivieren_US
dc.contributor.authorGalί, Jordien_US
dc.date.accessioned2009-01-28T14:59:54Z-
dc.date.available2009-01-28T14:59:54Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/17851-
dc.description.abstractWe develop a utility based model of fluctuations, with nominal rigidities, and unemployment. In doing so, we combine two strands of research: the New Keynesian model with its focus on nominal rigidities, and the Diamond-Mortensen-Pissarides model, with its focus on labor market frictions and unemployment. In developing this model, we proceed in two steps. We first leave nominal rigidities aside. We show that, under a standard utility specification, productivity shocks have no effect on unemployment in the constrained e?cient allocation. We then focus on the implications of alternative real wage setting mechanisms for fluctuations in unemployment. We then introduce nominal rigidities in the form of staggered price setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence of real wage rigidities. We show the nature of the tradeoff between inflation and unemployment stabilization, and we draw the implications for optimal monetary policy.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kiel-
dc.relation.ispartofseriesKieler Arbeitspapiere 1335en_US
dc.subject.jelE50en_US
dc.subject.jelE32en_US
dc.subject.ddc330en_US
dc.subject.keywordnew Keynesian modelen_US
dc.subject.keywordlabor market frictionsen_US
dc.subject.keywordsearch modelen_US
dc.subject.keywordunemploymenten_US
dc.subject.keywordsticky pricesen_US
dc.subject.keywordreal wage rigiditiesen_US
dc.subject.stwNew-Keynesian Phillips Curveen_US
dc.subject.stwUngleichgewichtstheorieen_US
dc.subject.stwArbeitslosigkeiten_US
dc.subject.stwLohnrigiditäten_US
dc.subject.stwPreisrigiditäten_US
dc.subject.stwFriktionelle Arbeitslosigkeiten_US
dc.subject.stwTheorieen_US
dc.titleA New Keynesian Model with Unemploymenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn534872069en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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