This paper analyzes the inefficiencies arising from the combination of fixed exchange rates,
nominal rigidity, and free capital mobility. We document that nominal wages are downwardly …

In standard models, economic activity fluctuates symmetrically around a “natural rate” and
stabilization policies can dampen these fluctuations but do not affect the average level of …

This paper develops a search-and-matching model that incorporates temporary
unemployment and applies the model to study the labor market dynamics of the COVID-19 …

We introduce a model of monetary policy with downward nominal wage rigidities and show
that both the slope and curvature of the Phillips curve depend on the level of inflation and …

Downward wage rigidity is central to many explanations of unemployment fluctuations. In
benchmark models, the wage for new hires is key, but there is limited evidence of downward …

This paper develops a new approach to test for downward wage rigidity by examining
transitory shocks to labor demand (ie, rainfall) across 600 Indian districts. Nominal wages …

Recent research in macroeconomics emphasizes the role of wage rigidity in accounting for
the volatility of unemployment fluctuations. We use worker-level data from the CPS to …

This paper proposes a search-and-matching model of unemployment in which jobs are
rationed: the labor market does not clear in the absence of matching frictions. This job …

We present new evidence from a unique survey of firms across Europe on downward wage
rigidity in both real and nominal terms. Our results indicate that wage rigidities are related to …

Using 1979–2012 CPS data for the United States and 1975–2012 NES data for Great
Britain, we study wage behavior in both countries, with particular attention to the Great …