Comments on: “Search and matching frictions and optimal monetary policy”

2008 ◽  
Vol 55 (5) ◽  
pp. 957-960 ◽  
Author(s):  
Ester Faia
Keyword(s):  
Monetary Policy ◽  
Optimal Monetary Policy ◽  
Search And Matching ◽  
Matching Frictions ◽  
Search And Matching Frictions

IMMIGRATION AND UNEMPLOYMENT: A MACROECONOMIC APPROACH

2017 ◽  
Vol 23 (4) ◽  
pp. 1313-1339 ◽  
Author(s):  
Takehiro Kiguchi ◽  
Andrew Mountford
Keyword(s):  
Temporary Increase ◽  
Macroeconomic Model ◽  
Search And Matching ◽  
Matching Frictions ◽  
Search And Matching Frictions

This paper analyzes the effects of an unanticipated increase in immigration in a macroeconomic model with search and matching frictions. It shows how an immigration shock can lead to a temporary increase in unemployment under a variety of conditions and that this is qualitatively consistent with the responses from a VAR estimated on postwar US data.

A NOTE ON TREND GROWTH, UNEMPLOYMENT, AND OPTIMAL MONETARY POLICY

2018 ◽  
Vol 23 (4) ◽  
pp. 1703-1719
Author(s):  
Wolfgang Lechthaler ◽  
Mewael F. Tesfaselassie
Keyword(s):  
Monetary Policy ◽  
Labor Market ◽  
Interest Rate ◽  
Nominal Interest Rate ◽  
Price Stability ◽  
Optimal Monetary Policy ◽  
Search And Matching ◽  
Trend Growth

We analyze the implications of trend growth for optimal monetary policy in the presence of search and matching unemployment. We show that trend growth interacts importantly with the inefficiencies stemming from the labor market. Higher trend growth exacerbates the inefficiencies of the labor market and therefore calls for larger deviations from price stability. Our analysis implies that lower trend growth reduces not only the level but also the optimal volatility of the nominal interest rate.

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