Cantelmo, Alessandro.
Sectoral Labor Mobility and Optimal Monetary Policy Alessandro Cantelmo. [electronic resource] / Alessandro Cantelmo. - Washington, D.C. : International Monetary Fund, 2017. - 1 online resource (33 p.) - IMF Working Papers . - IMF Working Papers .
In an estimated two-sector New-Keynesian model with durable and nondurable goods, an inverse relationship between sectoral labor mobility and the optimal weight the central bank should attach to durables inflation arises. The combination of nominal wage stickiness and limited labor mobility leads to a nonzero optimal weight for durables inflation even if durables prices were fully flexible. These results survive alternative calibrations and interestrate rules and point toward a non-negligible role of sectoral labor mobility for the conduct of monetary policy.
1475584784 : 18.00 USD
1018-5941
10.5089/9781475584783.001 doi
Central Banks And Their Policies
DSGE
Durable Goods
Labor Mobility
Optimal Monetary Policy
All Countries
Sectoral Labor Mobility and Optimal Monetary Policy Alessandro Cantelmo. [electronic resource] / Alessandro Cantelmo. - Washington, D.C. : International Monetary Fund, 2017. - 1 online resource (33 p.) - IMF Working Papers . - IMF Working Papers .
In an estimated two-sector New-Keynesian model with durable and nondurable goods, an inverse relationship between sectoral labor mobility and the optimal weight the central bank should attach to durables inflation arises. The combination of nominal wage stickiness and limited labor mobility leads to a nonzero optimal weight for durables inflation even if durables prices were fully flexible. These results survive alternative calibrations and interestrate rules and point toward a non-negligible role of sectoral labor mobility for the conduct of monetary policy.
1475584784 : 18.00 USD
1018-5941
10.5089/9781475584783.001 doi
Central Banks And Their Policies
DSGE
Durable Goods
Labor Mobility
Optimal Monetary Policy
All Countries