Optimal monetary policy and downward nominal wage rigidity in frictional labor markets
Texas Tech University, Department of Economics
Labor search and matching model with downward nominal wage rigidity (DNWR) using Linex adjustment cost function, Rotemberg price stickiness, money-in-utility, and Nash bargaining over nominal wages and hours
monopolistic competition with Rotemberg price adjustment costs, search and matching frictions for hiring, asymmetric Linex nominal wage adjustment costs
Table 6 p.360
Optimal long-run inflation with DNWR, deviations from Hosios condition, with money demand