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dc.contributor.authorFaia, Esteren_US
dc.contributor.authorLechthaler, Wolfgangen_US
dc.contributor.authorMerkl, Christianen_US
dc.date.accessioned2009-10-28en_US
dc.date.accessioned2010-07-07T12:06:35Z-
dc.date.available2010-07-07T12:06:35Z-
dc.date.issued2009en_US
dc.identifier.piurn:nbn:de:101:1-20090825618en_US
dc.identifier.urihttp://hdl.handle.net/10419/36174-
dc.description.abstractWe study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are set according to a right to manage bargaining where the firms' counterpart is given by currently employed workers. Our model captures well the salient features of European labor market, as it leads to sclerotic dynamics of worker flows. The coexistence of those types of labor market frictions alongside with sticky prices gives rise to a non-trivial trade-off for the monetary authority. In this framework, firms and current employees extract rents and the policy maker finds it optimal to use state contingent inflation taxes/subsidies to smooth those rents. Hence, in the optimal Ramsey plan, inflation deviates from zero and the optimal volatility of inflation is an increasing function of firing costs. The optimal rule should react to employment alongside inflation.en_US
dc.language.isoengen_US
dc.publisherForschungsinst. zur Zukunft der Arbeit Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 4322en_US
dc.subject.jelE52en_US
dc.subject.jelE24en_US
dc.subject.ddc330en_US
dc.subject.keywordOptimal monetary policyen_US
dc.subject.keywordhiring and firing costsen_US
dc.subject.keywordlabor market frictionsen_US
dc.subject.keywordpolicy trade-offen_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwArbeitsmobilitäten_US
dc.subject.stwKündigungen_US
dc.subject.stwKostenen_US
dc.subject.stwLohnverhandlungenen_US
dc.subject.stwLohnrigiditäten_US
dc.subject.stwPreisrigiditäten_US
dc.subject.stwRegelgebundene Politiken_US
dc.subject.stwInflationsrateen_US
dc.subject.stwUngleichgewichtstheorieen_US
dc.subject.stwTheorieen_US
dc.titleLabor turnover costs, workers' heterogeneity, and optimal monetary policyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn609425919en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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