DP7771 Monetary Policy and Unemployment

Author(s): Jordi Galí
Publication Date: April 2010
Keyword(s): labor market frictions, nominal rigidities, wage rigidities
JEL(s): E32, E52
Programme Areas: International Macroeconomics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=7771

Much recent research has focused on the development and analysis of extensions of the New Keynesian framework that model labor market frictions and unemployment explicitly. The present paper describes some of the essential ingredients and properties of those models, and their implications for monetary policy.