Labor Markets and Monetary Policy: A New-Keynesian Model with Unemployment
---- Acknowledgements -----
We thank Ricardo Caballero, Pierre Cahuc, Mark Gertler, Marvin Goodfriend, Bob Hall, Dale Henderson, Peter Ireland, Julio Rotemberg, Richard Rogerson, Ivan Werning, and Michael Woodford for helpful comments. We also thank Dan Cao for valuable research assistance. We thank the NSF, the Ministerio de Educacion y Ciencia (SEJ 2005-01124), and the Barcelona Economics Network, for financial support. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.