Essays on open economic, inflation and labour markets

by Campolmi, Alessia

Abstract (Summary)
Abstract In these last years there has been an increasing literature developing DSGE Open Economy Models with market imperfections and nominal rigidities. It is the so called "New Open Economy Macroeconomics". Within this class of models the first chapter analyses the issue of whether the monetary authority should target Consumer Price Index (CPI) inflation or domestic inflation. It is shown that the introduction of monopolistic competition in the labour market and nominal wage rigidities rationalise CPI inflation targeting. In the second chapter we introduce matching and searching frictions in the labour market and relate different labour market structures across European countries with differences in the volatility of inflation across the same countries. In the last chapter we use a two-country model with oil in the production function and price and wage rigidities to relate movements in wage and price inflation, real wages and GDP growth rate to oil price changes.
This document abstract is also available in Spanish.
Bibliographical Information:

Advisor:GalĂ­ Garreta, Jordi

School:Universitat Pompeu Fabra

School Location:Spain

Source Type:Master's Thesis

Keywords:economia i empresa


Date of Publication:02/06/2008

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