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The Asymmetric Effects of Monetary Policy on Job Creation and Destruction

This paper presents theory and evidence on the asymmetric effects of monetary policy on job creation and job destruction. First, it solves a dynamic matching model and it shows how interest rate changes result in an asymmetric response of job creation and destruction. Second, it looks at how changes...

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Bibliographic Details
Main Author: Garibaldi, Pietro
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1997
Series:IMF Working Papers
Subjects:
Labour
Productivity
Unemployment: Models, Duration, Incidence, And Job Search
Production
Job Creation
Industrial Productivity
Open Economy Macroeconomics
Unemployment
Aggregate Labor Productivity
Aggregate Human Capital
Labor
Macroeconomics: Production
Foreign Exchange
Labor Demand
Labor Market
Macroeconomics
Wages
Job Destruction
Economic Theory
Intergenerational Income Distribution
Income Economics
Employment
Production And Operations Management
United States
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:This paper presents theory and evidence on the asymmetric effects of monetary policy on job creation and job destruction. First, it solves a dynamic matching model and it shows how interest rate changes result in an asymmetric response of job creation and destruction. Second, it looks at how changes in the federal fund rate affect gross job flows in the U.S. manufacturing industry, and it finds evidence of asymmetry. Tight policy increases job destruction and reduces net employment changes. Conversely, easy policy appears ineffective in stimulating job creation
Physical Description:30 pages
ISBN:9781451967555

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