| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP10814 |
| DP10814 Unemployment (Fears) and Deflationary Spirals | |
| Wouter Den Haan; Pontus Rendahl; Markus Riegler | |
| 发表日期 | 2015-09-13 |
| 出版年 | 2015 |
| 语种 | 英语 |
| 摘要 | The interaction of incomplete markets and sticky nominal wages is shown to magnify business cycles even though these two features ? in isolation ? dampen them. During recessions, fears of unemployment stir up precautionary sentiments which induces agents to save more. The additional savings may be used as investments in both a productive asset (equity) and an unproductive asset (money). But even a small rise in money demand has important consequences. The desire to hold money puts deflationary pressure on the economy, which, provided that nominal wages are sticky, increases wage costs and reduces firm profits. Lower profits repress the desire to save in equity, which increases (the fear of) unemployment, and so on. This is a powerful mechanism which causes the model to behave differently from both its complete markets version, and a version with incomplete markets but without aggregate uncertainty. In contrast to previous results in the literature, agents uniformly prefer non-trivial levels of unemployment insurance. |
| 主题 | Monetary Economics and Fluctuations |
| 关键词 | Business cycles Heterogeneous agents Keynesian unemployment Magnification Propagation Search friction |
| URL | https://cepr.org/publications/dp10814 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/539643 |
| 推荐引用方式 GB/T 7714 | Wouter Den Haan,Pontus Rendahl,Markus Riegler. DP10814 Unemployment (Fears) and Deflationary Spirals. 2015. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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