00000nam 2200000zi 4500 9.928300 CaOODSP 20231006123104 m o d f cr mn||||||||| 231006t20232023onca ob f000 0 eng d CaOODSP eng rda CaOODSP eng eng fre FB3-5/2023-52E-PDF Birinci, Serdar, author. Labor market shocks and monetary policy / by Serdar Birinci, Fatih Karahan, Yusuf Mercan and Kurt See. [Ottawa] : Bank of Canada = Banque du Canada, 2023. ©2023 1 online resource (ii, 46, 24 pages) : colour illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-52 ISSN assigned to different series. "Last updated: October 5, 2023." Includes bibliographical references (pages 44-46). "We develop a heterogeneous-agent New Keynesian model featuring a frictional labor market with on-the-job search to quantitatively study the positive and normative implications of employer-to-employer (EE) transitions for inflation. We find that EE dynamics played an important role in shaping the differential inflation dynamics observed during the Great Recession and COVID-19 recoveries, with the former exhibiting subdued EE transitions and inflation despite both episodes sharing similar unemployment dynamics. The optimal monetary policy prescribes a strong positive response to EE fluctuations, implying that central banks should distinguish between recovery episodes with similar unemployment but different EE dynamics"--Abstract, page ii. Includes abstracts in English and French. Labor market Econometric models. Inflation (Finance) Econometric models. Monetary policy Econometric models. Marché du travail Modèles économétriques. Inflation Modèles économétriques. Politique monétaire Modèles économétriques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2023-52. (CaOODSP)9.806221 PDF 1.93 MB https://publications.gc.ca/collections/collection_2023/banque-bank-canada/FB3-5-2023-52-eng.pdf