This page presents an excerpt of the available research material, including the Preliminary Pages, Table of Contents, Abstract, Chapters One to Five, and References. It provides a comprehensive overview of the study, enhancing readability and accessibility for students, and researchers seeking complete material on the topic stated above.
I am profoundly grateful to everyone who contributed to the successful completion of this project. I am especially grateful to my Supervisor (Name), the Head of Department (Name), and the Lecturers in the Department of Economics for their invaluable guidance and support. I also acknowledge the contributions of authors and scholars whose works on Essays on Open Economy, Inflation, and Labour Markets provided essential insights. Special thanks go to my study area (and any funding organizations, if applicable) for their financial assistance. I am equally thankful to stakeholders, including mentors, teachers, and colleagues, for their encouragement and support. Finally, I deeply appreciate my family and friends for their patience and unwavering support throughout this journey. Your contributions have been instrumental in making this research a reality.
In these last years there has been an increasing literature developing DSGE Open Economy Models with market imperfections and nominal rigidities. It is the so called”New Open Economy Macroeconomics”. Up to now within this class of models (and differently from what it is happening in New Keynesian closed economy models) relatively little attention has been devoted to the labor markets. The first two chapters provide two cases where relaxing the assumptions of perfect competition and no frictions in the labor market is important for the question addressed. In the first chapter monopolistic competition in the labor market and nominal wage rigidities are introduced in an otherwise standard small open economy model.
Within this framework we address the question of whether the presence of sticky wages provides a rational for Consumer Price Inflation targeting in the model. In the second chapter we introduce matching and searching frictions in the labor market and relate different labor market structures across European countries with differences in the volatility of inflation across the same countries. In the last chapter we use a two-country model with oil in the production function and price and wage rigidities to relate movements in wage and price inflation, real wages and GDP growth rate to oil price changes.
1.1 Introduction
… As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the aim and objectives of the study. Others are significance of the study, scope of work, Research hypothesis and questions, limitation of the study and definition of terms.…
