Sehr geehrte Damen und Herren,
wir laden Sie herzlich zum VOSTA Freitagsseminar mit Herrn Martin Wolf, Universität
Wien, mit dem Titel "Optimal Prudential Policy in Economies with Downward Wage Rigidity" ein.
Termin:
Freitag, 9. November 2018 um 11.00 Uhr
Ort:
Oesterreichische Nationalbank
Veranstaltungssaal, Erdgeschoss
Otto-Wagner-Platz 3
1090 Wien
Abstract:
This paper studies optimal policy in economies with downward nominal wage rigidity when only prudential instruments are available. The optimal prudential policy intervenes in the labor market while all other markets may clear competitively. In contrast to fiscal
devaluation where labor is subsidized in recessions, the prudential policy taxes labor in expansions as this curtails unemployment in recessions. However, the economy produces below potential in expansions. We analyse this trade-off theoretically and quantitatively
by applying the model to Greece. We find that prudential intervention before 2008 would have significantly reduced Greek unemployment after 2008. The welfare cost of downward wage rigidity is reduced by about half. Our results hold in a Walrasian labor market,
and in a labor market with wage-setting firms.
Um Ihre verlässliche
An- bzw. Abmeldung ersuchen wir bis Dienstag, 6. November 2018, unter
event-management@oenb.at.
Mit freundlichen Grüßen
Event-Management
