We analyze the implications of changes in the trend growth rate for optimal monetary policy in the presence of search and matching...

Kiel Policy Brief No. 5

We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are set according to...

Recently, the world economy has seen its greatest down turn since World War II. Although not as bad as during the Great Depression,...

Several contributions have recently assessed the size of fiscal multipliers both in RBC models and in New Keynesian models. This paper...

This paper analyzes the effect of downwards wage rigidity on wage setting, wage compression and firm training. It is shown that...

In a simple model, I demonstrate that the U-shaped relationship between income and income diversification typically found in...

Should governments only purchase domestic goods to increase welfare? And would government spending be higher were it only used for...

In the Great Recession most OECD countries used short-time work (publicly subsidized working time reductions) to counteract a steep...

This paper characterizes long-run and short-run optimal fiscal policy in the labor selection framework. In a calibrated non-Ramsey...

In-Depth Analysis in preparation for the Monetary Dialogue for the European Parliament in September 2015 ...

We use a dynamic trade model with two sectors and two types of workers to analyze the optimal setting of income-generating tariffs....

In the presence of increasing specialization of workers it becomes more and more difficult for firms to find the most suitable...

In the presence of increasing specialization of workers it becomes more and more difficult for firms to find the most suitable...

Several contributions have recently assessed the size of fiscal multipliers both in RBC models and New Keynesian models. None of the...