全球智库信息集成服务系统(G2TT): DP10982 Short-Term Pain for Long-Term Gain: Market Deregulation and Monetary Policy in Small Open Economies

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP10982
	DP10982 Short-Term Pain for Long-Term Gain: Market Deregulation and Monetary Policy in Small Open Economies
	Fabio Ghironi; Romain Duval; Matteo Cacciatore
发表日期	2015-12-13
出版年	2015
语种	英语
摘要	This paper explores the effects of labor and product market reforms in a New Keynesian, small open economy model with labor market frictions and endogenous producer entry. We show that it takes time for reforms to pay off, typically at least a couple of years. This is partly because the benefits materialize through firm entry and increased hiring, both of which are gradual processes, while any reform-driven layoffs are immediate. Some reforms---such as reductions in employment protection---increase unemployment temporarily. Implementing a broad package of labor and product market reforms minimizes transition costs. Importantly, reforms do not have noticeable deflationary effects, suggesting that the inability of monetary policy to deliver large interest rate cuts in their aftermath---either because of the zero bound on policy rates or because of membership in a monetary union---may not be a relevant obstacle to reform. Alternative simple monetary policy rules do not have a large effect on transition costs.
主题	International Macroeconomics and Finance ; Monetary Economics and Fluctuations
关键词	Employment protection Firm entry Product market regulation Structural reforms Unemployment benefits
URL	https://cepr.org/publications/dp10982
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/539811
推荐引用方式 GB/T 7714	Fabio Ghironi,Romain Duval,Matteo Cacciatore. DP10982 Short-Term Pain for Long-Term Gain: Market Deregulation and Monetary Policy in Small Open Economies. 2015.