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

  • 2.1Overview of Open Economy
  • 2.2Theoretical Framework of Inflation
  • 2.3Empirical Studies on Inflation
  • 2.4Open Economy and Inflation Relationship
  • 2.5Labour Markets Overview
  • 2.6Impact of Inflation on Labour Markets
  • 2.7International Trade and Labour Markets
  • 2.8Inflation and Unemployment Nexus
  • 2.9Inflation Expectations and Labour Markets
  • 2.10Policies Addressing Inflation and Labour Markets

Chapter THREE

RESEARCH METHODOLOGY

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

Chapter FOUR

DATA PRESENTATION AND ANALYSIS

  • 4.1Overview of Research Findings
  • 4.2Relationship between Open Economy and Inflation
  • 4.3Impact of Inflation on Labour Markets
  • 4.4Labour Market Dynamics in Open Economies
  • 4.5Policy Implications for Inflation and Labour Markets
  • 4.6Regional Variances in Labour Market Responses
  • 4.7Comparison with Previous Studies
  • 4.8Future Research Directions

Chapter FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

  • 5.1Summary of Findings
  • 5.2Conclusions
  • 5.3Contributions to Knowledge
  • 5.4Implications for Policy and Practice
  • 5.5Recommendations for Future Research

Project Abstract

<p> 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. <br></p>

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