The impact of labor markets on the transmission of monetary policy in an estimated dsge model
By: by Kai Christoffel, Keith Kuester, Tobias Linzert.
Contributors: Kuester, Keith.
Series: Discussion paper ;; no. 1902; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1902
Publisher: IZA
Published: 2005
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Labor market -- Germany.; Monetary policy -- Germany.; Inflation (Finance) -- Germany.; Business cycles -- Germany.
Description: "Real wages are a key determinant of marginal costs. The latter themselves are a driving force of inflation. We ask how wages and labor market shocks feed into the inflation process. We model search and matching frictions in the labour market in an otherwise standard New-Keynesian closed economy DSGE model. We estimate the model using Bayesian techniques for German data from the mid 70s to present. In our framework, we find that labor market structure is important for the evolution of the business cycle, and for monetary policy in particular. Yet labor market shocks are not important information for the conduct of stabilization policy"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.