E - Macroeconomics and Monetary Economics
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Labor Market Participation, Unemployment and Monetary Policy
Staff Working Paper 2014-9 Alessia Campolmi, Stefano GnocchiWe incorporate a participation decision in a standard New Keynesian model with matching frictions and show that treating the labor force as constant leads to incorrect evaluation of alternative policies.Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Labour markets, Monetary policy transmission JEL Code(s): E, E2, E24, E3, E32, E5, E52
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