Wage Rigidity, Human Capital and Non-Neutrality of Monetary Policy in the Long-Run

Nemoto, Kazuyuki
Sanso Frago, Marcos (dir.)

Universidad de Zaragoza, ECON, 2013
Departamento de Análisis Económico,

Máster Universitario en Investigación en Economía

Resumen: This paper aims to analyze the non-neutrality of monetary policy incorporating the Lucas (1988) type endogenous growth model in the standard New Keynesian macroeconomic model with nominal wage rigidities. It is shown that the monetary policy summarized in the level of trend inflation is non-neutral in the long-run economic growth in the presence of nominal wage rigidities. The growth-inflation nexus depends on the degree of nominal rigidities and the degree of differentiation of the labor services.

Palabra(s) clave (del autor): new keynesian ; wage rigidity ; human capital ; trend inflation ; non-neutrality of monetary policy

Tipo de Trabajo Académico: Trabajo Fin de Master