Aren't Labor Markets Important for Monetary Policy?

2020 ◽  
Author(s):  
Elizaveta Lukmanova
Keyword(s):  
Monetary Policy ◽  
Labor Markets

A Modern Kaleckian-Keynesian Framework for Economic Theory and Policy

2013 ◽  
pp. 309-325 ◽  
Author(s):  
Philip Arestis ◽  
Malcolm Sawyer
Keyword(s):  
Economic Theory ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Labor Markets ◽  
Macroeconomic Policy ◽  
Financial Policy ◽  
Policy Agenda ◽  
Macroeconomic Policies ◽  
John Maynard Keynes ◽  
Main Instrument

Macroeconomic policies come from the “vision” of the ways in which an economy works. A “vision” of the economy where unemployment is a frequent occurrence gives rise to quite different policies from a “vision” of the economy in which there is little room for unemployment of labor, as, for example, in the New Classical macroeconomics. The macroeconomic vision that underlies the policy agenda of this chapter is described as Kaleckian-Keynesian, as it draws on the works and ideas of Michal Kalecki and John Maynard Keynes and others that approach the matter in a similar fashion. This chapter explores a modern Kaleckian-Keynesian framework for economic theory and policy. It first discusses fiscal policy, the main instrument of macroeconomic policy, before turning to monetary policy as well as financial policy, inflation, and policies that relate to product markets and labor markets.

scholarly journals The role of labor markets for euro area monetary policy

2009 ◽  
Vol 53 (8) ◽  
pp. 908-936 ◽  
Author(s):  
Kai Christoffel ◽  
Keith Kuester ◽  
Tobias Linzert
Keyword(s):  
Monetary Policy ◽  
Labor Markets ◽  
Euro Area

Labor Markets and Monetary Policy

2010 ◽  
Vol 45 (3) ◽  
pp. 152-157 ◽  
Author(s):  
Charles L Evans
Keyword(s):  
Monetary Policy ◽  
Labor Markets

scholarly journals Identifying the Role of Labor Markets for Monetary Policy in an Estimated DSGE Model

2006 ◽  
Author(s):  
Kai Philipp Christoffel ◽  
Keith Kuester ◽  
Tobias Linzert
Keyword(s):  
Monetary Policy ◽  
Labor Markets ◽  
Dsge Model

scholarly journals Labor Markets and Monetary Policy: A New-Keynesian Model with Unemployment

2008 ◽  
Author(s):  
Olivier Blanchard ◽  
Jordi Gali
Keyword(s):  
Monetary Policy ◽  
Labor Markets ◽  
New Keynesian ◽  
New Keynesian Model ◽  
Keynesian Model

scholarly journals Insider-Outsider Labor Markets, Hysteresis and Monetary Policy

2020 ◽  
Author(s):  
Jordi Galí
Keyword(s):  
Monetary Policy ◽  
Labor Markets

scholarly journals Optimal monetary policy in economies with dual labor markets

2009 ◽  
Vol 33 (7) ◽  
pp. 1469-1489 ◽  
Author(s):  
Fabrizio Mattesini ◽  
Lorenza Rossi
Keyword(s):  
Monetary Policy ◽  
Labor Markets ◽  
Optimal Monetary Policy ◽  
Dual Labor Markets

scholarly journals Labor Markets and Monetary Policy: A New-Keynesian Model with Unemployement

2008 ◽  
Author(s):  
Olivier J. Blanchard ◽  
Jordi Galí
Keyword(s):  
Monetary Policy ◽  
Labor Markets ◽  
New Keynesian ◽  
New Keynesian Model ◽  
Keynesian Model

scholarly journals Essays on boundedly rational expectations in macroeconomics

2021 ◽  
Author(s):  
◽  
Tim Hagenhoff
Keyword(s):  
Monetary Policy ◽  
Labor Market ◽  
Mathematical Models ◽  
Labor Markets ◽  
Rational Expectations ◽  
Wage Bargaining ◽  
Macroeconomic Dynamics ◽  
Consumption Decisions ◽  
Market Variables

What are the implications of simple deviations from rational expectations for macroeconomic dynamics, monetary policy, consumption decisions and labor markets? Which biases underly even sophisticated survey expectations? I aim to answer these questions by building upon simple mathematical models of expectations that are boundedly rational and generate some disagreement across expectations. While monetary policy should be extraordinarily hawkish if it wants to control inflation under such expectations, it also generates substantial dispersion in consumption and wealth. Further, the sluggishness of labor market variables may be explained by sluggish expectations that affect, for instance, wage bargaining. Finally, expectations of professional forecasters are intrinsically persistent, depend on the last observed consensus forecast and also extrapolate current news more than would be rational.

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