Nonlinear unemployment effects of the inflation tax

Long-run inflation has nonlinear and state-dependent effects on unemployment, output, and welfare. We show this using a standard monetary search model with two shocks – productivity and monetary – and frictions in both labor and goods markets. Inflation lowers the surplus from a worker–firm match, i...

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Bibliographic Details
Main Author: Mohammed, Ait Lahcen (author)
Other Authors: Baughman, Garth (author), Rabinovich, Stanislav (author), van Buggenum, Hugo (author)
Format: article
Published: 2022
Subjects:
Online Access:http://dx.doi.org/10.1016/j.euroecorev.2022.104247
https://www.sciencedirect.com/science/article/pii/S0014292122001465
http://hdl.handle.net/10576/39958
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