000			01011nam a22001457a 4500
999			_c520366 _d520366
008			220912b ||||| |||| 00| 0 eng d
100			_aKekre, Rohan _933989
245			_aOptimal currency areas with labor market frictions
260			_aAmerican Economic Journal: Macroeconomics
300			_a14(2), Apr, 2022: p.44-95
520			_aI study efficiency and optimal monetary policy in a two-country monetary union with frictional labor markets. With heterogeneity in labor market frictions, the constrained efficient allocation generically cannot be achieved even if productivity shocks affecting each country are the same. The second-best optimal policy targets smaller inflation and output gaps in the more sclerotic labor market. A quantitative calibration to the eurozone implies welfare gains from redefining the union's inflation target to put more weight on its sclerotic members. – Reproduced
773			_aAmerican Economic Journal: Macroeconomics
906			_aLABOUR MARKET
942			_cAR