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- W4308492585 abstract "The effectiveness of labor market indicators for monetary policy has not yet been theoretically established despite their practical significance to practitioners. To bridge the gap between theory and practice, this paper investigates whether labor market indicators may improve the efficiency of monetary policy implementation by providing the monetary authority with timely information about current economic conditions. To this end, a small open macroeconomic model with endogenous involuntary unemployment is constructed, estimated, and simulated based on the Korean economy. We find that a monetary policy rule augmented by labor market indicators outperforms one using a conventional output gap in terms of social welfare." @default.
- W4308492585 created "2022-11-12" @default.
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- W4308492585 date "2023-01-01" @default.
- W4308492585 modified "2023-10-14" @default.
- W4308492585 title "The effectiveness of labor market indicators for conducting monetary policy: Evidence from the Korean economy" @default.
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- W4308492585 doi "https://doi.org/10.1016/j.econmod.2022.106098" @default.
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