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.
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| Department/Agency | Bank of Canada, issuing body. |
|---|---|
| Title | Labor 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 type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| 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. |
| Description | 1 online resource (ii, 46, 24 pages) : colour illustrations. |
| Catalogue number |
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| Subject terms | Labor market -- Econometric models. Inflation (Finance) -- Econometric models. Monetary policy -- Econometric models. Marché du travail -- Modèles économétriques. Inflation -- Modèles économétriques. Politique monétaire -- Modèles économétriques. |
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