RETHINKING OPTIMAL EXCHANGE RATE REGIMES WITH FRICTIONAL LABOR MARKETS

被引：7
|
作者：
Campolmi, Alessia [1 ,2 ]
Faia, Ester [3 ,4 ]
机构：
[1] Cent European Univ, Budapest, Hungary
[2] Magyar Nemzeti Bank, Budapest, Hungary
[3] Goethe Univ Frankfurt, D-60323 Frankfurt, Germany
[4] CFS, London, England
来源：
MACROECONOMIC DYNAMICS | 2015年 / 19卷 / 05期
关键词：
Optimal Exchange Rate Regimes; Frictional Labor Markets; Welfare; UNEMPLOYMENT; EMPLOYMENT; SEARCH; MODELS; RIGIDITIES; POLICY; WAGES;
D O I：
10.1017/S1365100513000758
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
Currency fluctuations are an important determinant of labor market dynamics. Vice versa, relative labor costs affect real exchange rate dynamics. The optimal choice of exchange rate regimes cannot neglect this nexus. We assess such a choice using a two-country model with frictional labor markets. The monetary authority faces a tension between the classical insulating property of floating exchange rates and the destabilizing effects of currency fluctuations on (relative) job flows. Results show that the second motive is important: optimal monetary policy prescribes (some) response to the exchange rate. We also reexamine the conditions for optimal policy in a currency area whose members experience asymmetries in labor market institutions.
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页码：1116 / 1147
页数：32
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