Essays on open economy, inflation, and labour markets | Blazingprojects Postgraduate Thesis
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Essays on open economy, inflation, and labour markets

 

Table Of Contents


Chapter ONE

INTRODUCTION

  • 1.1Introduction
  • 1.2Background of Study
  • 1.3Problem Statement
  • 1.4Objective of Study
  • 1.5Limitation of Study
  • 1.6Scope of Study
  • 1.7Significance of Study
  • 1.8Structure of the Research
  • 1.9Definition of Terms

Chapter TWO

LITERATURE REVIEW

  • 2.1Theoretical Framework
  • 2.2Open Economy Theories
  • 2.3Inflation Theories
  • 2.4Labour Market Theories
  • 2.5Relationship between Open Economy and Inflation
  • 2.6Relationship between Inflation and Labour Markets
  • 2.7Impact of Open Economy on Labour Markets
  • 2.8Effects of Inflation on Open Economy
  • 2.9Labour Market Policies in Open Economies
  • 2.10Inflation targeting strategies in Labour Markets

Chapter THREE

RESEARCH METHODOLOGY

  • 3.1Research Design
  • 3.2Research Approach
  • 3.3Data Collection Methods
  • 3.4Sampling Techniques
  • 3.5Data Analysis Procedures
  • 3.6Ethical Considerations
  • 3.7Limitations of the Methodology
  • 3.8Validity and Reliability of the Study

Chapter FOUR

DATA PRESENTATION AND ANALYSIS

  • 4.1Overview of Findings
  • 4.2Relationship between Open Economy and Inflation
  • 4.3Impact of Inflation on Labour Markets
  • 4.4Labour Market Policies and Open Economy
  • 4.5Inflation Targeting Strategies in Labour Markets
  • 4.6Case Studies and Examples
  • 4.7Comparison of Different Economies
  • 4.8Discussion on Key Findings

Chapter FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

  • 5.1Summary of Findings
  • 5.2Conclusions
  • 5.3Implications of the Study
  • 5.4Recommendations for Future Research
  • 5.5Conclusion and Final Thoughts

Thesis Abstract

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.

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