On-the-Job Search , Sticky Prices , and Persistence

  • Willem Van Zandweghe
  • Published 2007

Abstract

Models of the monetary transmission mechanism often generate empirically implausible business fluctuations. This paper analyzes the role of on-the-job search in the propagation of monetary shocks in a sticky price model with labor market search frictions. Such frictions induce long-term employment relationships, such that the real marginal cost is… (More)

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