Monetary policy in an era of transformation
Kristin Forbes We analyse cycles in policy interest rates in 24 advanced economies over 1970-2024, combining a new application of business cycle methodology with rich timeseries decompositions of the shocks driving rate govements. “Rate cycles” have gradually evolved over time, with less frequent cyclical turning points, more moderate tightening phases, and a larger role for […]
Staggered contracts and unemployment during recessions
Effrosyni Adamopoulou, Luis Díez Catalán, Ernesto Villanueva Wage rigidity – for example, due to collective contracts – can generate employment fluctuations, particularly during economic downturns. This column studies the impact of downward nominal wage rigidity on wage and employment dynamics during the 1993 and 2009 recessions in Spain. It shows that collective contracts renegotiated just […]