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Unemployment (fears) and deflationary spirals / Den Haan, Wouter J. ; Rendah, Pontus ; Riegler, Markus
The interaction of incomplete markets and sticky nominal wages is shown to magnify business cycles even though these two features - in isolation - dampen them. During recessions, fears of unemployment stir up precautionary sentiments which induces agents to save more. [...]
The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
2015 (Ademu Working Papers Series ; 8)

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