CEPR-RIETI Workshop

Labor Markets and the Macroeconomy: Theory, Evidence and Policy Implications

Announcement

Triggered by subprime loan-related issues, the financial crisis that started in the United States has now spread all over the world. It is a matter of great urgency to envisage a new role for monetary policy corresponding to this crisis.

On the other hand and partly because of intensified globalization, domestic income inequality has been widening. Consequently, optimizing labor market policies is also of great importance. Although monetary policy and labor market issues are often discussed separately, they are in fact closely related from a macroeconomic point of view.

In the current economic crisis with rising resource costs and food prices, an increase in interest rates is desirable to prevent inflation. However, higher interest rates can curb employment and depress the labor market even further. It may be said that a complicated trade-off exists between monetary policy and labor policy.

In this seminar, macroeconomists from Japan and Europe will participate in an academic discussion focused on the relationship between monetary policy and labor, and examine the implications on economic policies.

Information

  • Time and Date: 10:00-16:55, Friday December 19, 2008 (Open: 9:45 a.m.)
  • Venue: RIETI's seminar room (1121,11th Floor, METI ANNEX)
    1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo
  • Language: English (no interpretation available)
  • Hosts: Centre for Economic Policy Research (CEPR)
    Research Institute of Economy, Trade and Industry (RIETI)
  • Contact: Ms. Kyoko Inoue
    Research Institute of Economy, Trade and Industry (RIETI)
    TEL: 03-3501-8398 FAX: 03-3501-8416

*This Workshop is NOT for quotation.

Agenda

10:00 - 10:10 Opening Remarks by RIETI

FUJITA Masahisa's photo

FUJITA Masahisa (President and Chief Research Officer, RIETI / Professor, Konan University / Adjunct Professor, Institute of Economic Research, Kyoto University)

10:10 - 10:55 Session 1

Chairperson:HOSHINO Mitsuhide's photo

Chairperson:HOSHINO Mitsuhide (Director of Research, RIETI)

10:10 - 10:40 Presentation "The Effects of Technology Shocks on Hours and Output: A Robustness Analysis" (with David LOPEZ-SALIDO and Claudio MICHELACCI)

Fabio CANOVA's photo

Fabio CANOVA (ICREA Research Professor, Universitat Pompeu Fabra /Research Fellow, CEPR)

10:40 - 10:55 Discussion

10:55 - 11:10 Coffee Break

11:10 - 11:55 Session 2

Chairperson:HOSHINO Mitsuhide's photo

Chairperson:HOSHINO Mitsuhide (Director of Research, RIETI)

11:10 - 11:40 Presentation "Nominal Rigidities, News-Driven Business Cycles, and Monetary Policy" (with NUTAHARA Kengo)

11:40 - 11:55 Discussion

11:55 - 12:15 Break

12:15 - 13:15 Working Lunch

Chairperson:KOBAYASHI Keiichiro's photo

Chairperson:KOBAYASHI Keiichiro (Senior Fellow, RIETI)

12:15 - 12:25 Comments : CEPR researchers' view

Morten RAVN's photo

Morten RAVN (Professor of Economics, University of Southampton / Professor of Economics, European University Institute / Research Fellow, CEPR)

12:25 - 12:35 Comments : CEPR researchers' view

Fabio CANOVA's photo

Fabio CANOVA (ICREA Research Professor, Universitat Pompeu Fabra /Research Fellow, CEPR)

12:35 - 12:45 Comments : CEPR researchers' view

Jordi GALI's photo

Jordi GALI (Director and Senior Researcher, Centre de Recerca en Economia Internacional / Professor, Department of Economics, Universitat Pompeu Fabra/ Research Fellow, CEPR)

12:45 - 13:15 Discussion

13:15 - 13:30 Break

13:30 - 14:15 Session 3

Chairperson:KOBAYASHI Keiichiro's photo

Chairperson:KOBAYASHI Keiichiro (Senior Fellow, RIETI)

13:30 - 14:00 Presentation "The Vanishing Procyclicality of Labor Productivity and the Great Moderation" (with Thijs van RENS)

Jordi GALI's photo

Jordi GALI (Director and Senior Researcher, Centre de Recerca en Economia Internacional / Professor, Department of Economics, Universitat Pompeu Fabra/ Research Fellow, CEPR)

14:00 - 14:15 Discussion

14:15 - 15:00 Session 4

Chairperson:KOBAYASHI Keiichiro's photo

Chairperson:KOBAYASHI Keiichiro (Senior Fellow, RIETI)

14:15 - 14:45 Presentation "TFP Growth Slowdown and the Labor Market in Medium Run:The Case of Japan in the 1990s" (with NAKAJIMA Ryo and TANAKA Ryuichi )

Julen ESTEBAN-PRETEL's photo

Julen ESTEBAN-PRETEL (Assistant Professor, University of Tokyo)

14:45 - 15:00 Discussion

15:00 - 15:15 Coffee Break

15:15 - 16:00 Session 5

Chairperson:KOBAYASHI Keiichiro's photo

Chairperson:KOBAYASHI Keiichiro (Senior Fellow, RIETI)

15:15 - 15:45 Presentation "Investment Specific Change and the Dunlop-Tarshis Observation"

Morten RAVN's photo

Morten RAVN (Professor of Economics, University of Southampton / Professor of Economics, European University Institute / Research Fellow, CEPR)

15:45 - 16:00 Discussion

16:00 - 16:45 Session 6

Chairperson:KOBAYASHI Keiichiro's photo

Chairperson:KOBAYASHI Keiichiro (Senior Fellow, RIETI)

16:00 - 16:30 Presentation "Optimal Monetary Policy When Asset Markets are Incomplete"

NAKAJIMA Tomoyuki's photo

NAKAJIMA Tomoyuki (Faculty Fellow, RIETI / Associate Professor, Institute of Economic Research, Kyoto University)

16:30 - 16:45 Discussion

16:45 - 16:55 Closing Remarks by CEPR

Jordi GALI's photo

Jordi GALI (Director and Senior Researcher, Centre de Recerca en Economia Internacional / Professor, Department of Economics, Universitat Pompeu Fabra/ Research Fellow, CEPR)

*This workshop is funded by the Great Britain Sasakawa Foundation.