Optimal Monetary Policy Rules for Averting Productivity Induced Jobless Recoveries

David Hudgins and Jie Shuai

Review of Applied Economics, 2006, vol. 02, issue 2, 9

Abstract: Although high productivity growth is a primary economic goal across nations, it can lead to short run adjustment problems when it temporarily achieves high levels. This may induce a jobless recovery when labor productivity is high while an economy is experiencing sluggish growth or a recession. This paper creates a framework for empirically modeling these effects. This model is used in the context of an optimal control framework in order to derive policy rules for guiding monetary policy during such episodes.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/50147/files/2-David%20Hudgins.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:reapec:50147

DOI: 10.22004/ag.econ.50147

Access Statistics for this article

More articles in Review of Applied Economics from Lincoln University, Department of Financial and Business Systems Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().