EconStor >
Freie Universität Berlin >
Fachbereich Wirtschaftswissenschaft, Freie Universität Berlin >
Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/54728
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorEngler, Philippen_US
dc.date.accessioned2011-12-23en_US
dc.date.accessioned2012-01-18T14:26:13Z-
dc.date.available2012-01-18T14:26:13Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/54728-
dc.description.abstractAfter an expansionary monetary policy shock employment increases and unemployment falls. In standard New Keynesian models the fall in aggregate unemployment does not affect employed workers at all. However, Lüchinger, Meier and Stutzer (2010) found that the risk of unemployment negatively affects utility of employed workers: An increases in aggregate unemployment decreases workers' subjective well-being, which can be explained by an increased risk of becoming unemployed. I take account of this effect in an otherwise standard New Keynesian open economy model with unemployment as in Galí (2010) and find two important results with respect to expansionary monetary policy shocks: First, the usual wealth effect in New Keynesian models of a declining labor force, which is at odds with the data as highlighted by Christiano, Trabandt and Walentin (2010), is shut down. Second, the welfare effects of such shocks improve considerably, modifying the standard results of the open economy literature that set off with Obstfeld and Rogoff's (1995) redux model.en_US
dc.language.isoengen_US
dc.publisherFreie Univ., Fachbereich Wirtschaftswiss. Berlinen_US
dc.relation.ispartofseriesSchool of Business & Economics Discussion Paper: Economics 2011/24en_US
dc.subject.jelE24en_US
dc.subject.jelE52en_US
dc.subject.jelF32en_US
dc.subject.jelF41en_US
dc.subject.ddc330en_US
dc.subject.keywordopen economy macroeconomicsen_US
dc.subject.keywordmonetary policyen_US
dc.subject.keywordunemploymenten_US
dc.titleMonetary policy and unemployment in open economiesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn680587616en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:fubsbe:201124-
Appears in Collections:Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin

Files in This Item:
File Description SizeFormat
680587616.pdf383.47 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.