A newer version of this project is available. See below for other available versions.

ECIN Replication files for "Persistent monetary policy in a model with involuntary unemployment"

Principal Investigator(s):  View help for Principal Investigator(s) Elizaveta Lukmanova, Central Bank of Ireland and KU Leuven; Roman Goncharenko, Central Bank of Ireland and KU Leuven

Version:  View help for Version V1

Name File Type Size Last Modified
FINAL_SUBMISSION_REPLICATION_VAR.zip application/zip 727.6 MB 03/09/2025 11:48:AM

Project Citation: 

Lukmanova, Elizaveta, and Goncharenko, Roman. ECIN Replication files for “Persistent monetary policy in a model with involuntary unemployment.” Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2025-03-09. https://doi.org/10.3886/E222081V1

Project Description

Summary:  View help for Summary
In a basic New Keynesian DSGE model with involuntary unemployment, we study the role of labor markets in the transmission of persistent monetary policy shocks that increase households' inflation expectations. The model predicts that, in contrast to the standard nominal interest rate shocks, labor market conditions can affect the outcomes of persistent monetary policy shocks suggesting a trade-off between inflation and output growth: restricted labor market access leads to higher inflation response with smaller effects on output. Using a VAR analysis, we further provide empirical evidence consistent with the predictions of our theoretical model.


Scope of Project

Subject Terms:  View help for Subject Terms Long-term monetary policy; Long-run inflation expectations; Labor market frictions; Inflation target
JEL Classification:  View help for JEL Classification
      E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      E32 Business Fluctuations; Cycles
      E52 Monetary Policy
      E58 Central Banks and Their Policies
Manuscript Number:  View help for Manuscript Number ECIN-Mar-2023-0107.R2


Related Publications

Download this project

Published Versions

V3 [2025-04-28]

V2 [2025-04-16]

V1 [2025-03-09]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.