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From micro to macro hysteresis : long-run effects of monetary policy / by Felipe Alves and Giovanni L. Violante.FB3-5/2024-39E-PDF

"We develop a Heterogeneous Agent New Keynesian model with a three-state frictional labour market that is consistent with the empirical evidence that (i) low-skilled workers are more exposed to the business cycle, (ii) displacement leads to long-lasting earnings losses, and (iii) unemployment is a stepping stone toward exit from the labor force. In this environment, a transient contractionary monetary policy shock induces a very persistent reduction in labour force participation and labour productivity, especially among workers at the bottom of the skill distribution"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.950061&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleFrom micro to macro hysteresis : long-run effects of monetary policy / by Felipe Alves and Giovanni L. Violante.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2024-39
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • ISSN assigned to different series.
  • "Last updated: October 24, 2024."
  • Includes bibliographical references (pages 37-39).
  • Includes abstract in French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, 2024.
  • ©2024
Author / Contributor
  • Alves, Felipe, author.
Description1 online resource (ii, 39 pages) : graphs.
Catalogue number
  • FB3-5/2024-39E-PDF
Subject terms
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