Abstract
We find that the answer is no in an estimated DSGE model of the US economy in which exogenous movements in workers' market power are not a major driver of observed economic fluctuations. If they are, the tension between the conflicting stabilization objectives of monetary policy increases, but with negligible effects on the equilibrium behavior of the economy under optimal policy.
Original language | English (US) |
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Pages (from-to) | 1-31 |
Number of pages | 31 |
Journal | American Economic Journal: Macroeconomics |
Volume | 5 |
Issue number | 2 |
DOIs | |
State | Published - Apr 2013 |
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
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Replication data for: Is There a Trade-Off between Inflation and Output Stabilization?
Justiniano, A. (Creator), Primiceri, G. E. (Creator) & Tambalotti, A. (Creator), ICPSR - Interuniversity Consortium for Political and Social Research, 2013
DOI: 10.3886/e114268v1, https://www.openicpsr.org/openicpsr/project/114268/version/V1/view
Dataset