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Labor market shocks and monetary policy / by Serdar Birinci, Fatih Karahan, Yusuf Mercan and Kurt See.FB3-5/2023-52E-PDF

"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.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.928300&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleLabor market shocks and monetary policy / by Serdar Birinci, Fatih Karahan, Yusuf Mercan and Kurt See.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-52
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • ISSN assigned to different series.
  • "Last updated: October 5, 2023."
  • Includes bibliographical references (pages 44-46).
  • Includes abstracts in English and French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, 2023.
  • ©2023
Author / Contributor
  • Birinci, Serdar, author.
Description1 online resource (ii, 46, 24 pages) : colour illustrations.
Catalogue number
  • FB3-5/2023-52E-PDF
Subject terms
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