Fiscal Stimulus in a Credit Crunch: The Role of Wage Rigidity

dc.contributor.author	Furlanetto, Francesco
dc.date.accessioned	2018-05-08T12:59:07Z
dc.date.available	2018-05-08T12:59:07Z
dc.date.issued	2009
dc.identifier.isbn	978-82-7553-502-1
dc.identifier.issn	1502-8143
dc.identifier.uri	http://hdl.handle.net/11250/2497636
dc.description.abstract	In this paper we study the impact of an expansion in public spending in a credit constrained economy with sticky wages. The flexible wage version of the model implies strong expansionary effects on output and consumption but also a counterfactual increase in real wages. The introduction of sticky wages, besides being a realistic addition, solves these problems and preserves the expansionary effects on output and consumption. Moreover, once we introduce segmentation in the labor market, sticky wages are even essential to obtain expansionary effects.	nb_NO
dc.language.iso	eng	nb_NO
dc.publisher	Norges Bank	nb_NO
dc.relation.ispartofseries	Working Papers;8/2009
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal	*
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no	*
dc.subject	JEL: E32	nb_NO
dc.subject	JEL: E62	nb_NO
dc.subject	sticky wages	nb_NO
dc.subject	rule-of-thumb consumers	nb_NO
dc.subject	fiscal shocks	nb_NO
dc.subject	financial frictions	nb_NO
dc.title	Fiscal Stimulus in a Credit Crunch: The Role of Wage Rigidity	nb_NO
dc.type	Working paper	nb_NO
dc.description.version	publishedVersion	nb_NO
dc.subject.nsi	VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212	nb_NO
dc.source.pagenumber	38	nb_NO

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