UCLouvain Economics Seminar


The UCLouvain Economics Seminars is jointly organized by CORE and IRES.

Organizers: Gonzague Vannoorenberghe

On Thursday, 12:45 - 14:00 

Doyens 22  -  1, Place des Doyens, 1348 Louvain-la-Neuve

March 22, 2018 (Doyens 22)

Stefano Gnocchi
(Bank of Canada)

Downward Nominal Wage Rigidity Meets the Zero Lower Bound


We add downward nominal wage rigidity to a standard New Keynesian model with sticky prices and wages, where the zero lower bound on nominal interest rates is allowed to bind. We find that wage rigidity not only reduces the frequency of zero bound episodes but also mitigates the severity of corresponding recessions. As a result, previous studies abstracting from the presence of wage rigidity may have overemphasized the need for increasing the inflation target to offset the costs associated with hitting the zero bound. Moreover, our findings add to the recent debate on the presumed benefits of wage flexibility that has arisen in the aftermath of the Great Recession.

(Joint paper with R. Amano)



Other scheduled seminars

 Program of the academic year 2017-2018


21 Peter Dolton (University of Sussex)

28 Olivier Charlot (University of Cergy)


Catherine Guirkinger (University of Namur)


19 Katja Kaufmann (Bocconi University)

25 Luis Cabral (New York University)


Félix Kubler (University of Zurich)

9  Bilal Zia (World bank)

16 Paul Heidhues (University of Dusseldorf)

23 Cheti Nicoletti (University of York)

30 Alain Venditti (Aix Marseille School of Economics)


7  Heiner Schumacher (KU Leuven)

14 Ariell Reshef (Paris School of Economics)


Filipe Martins Da Rocha (Université Dauphine)

8  Heiko Karle (Frankfurt School of Finance and Management)

15 Sebastian Krautheim (University of Passau)

22 Harris Dellas (University of Bern)


1  Simon Cornée (University of Rennes)

Gregory Jolivet ( University of Bristol)

15 Ingela Alger (Toulouse School of Economics)

22 Stefano Gnocchi (Bank of Canada)

29 Manolis Galenianos (Royal Holloway)


19  Bernard Sinclair-Desgagné (HEC Montréal)

26 Simone Bertoli (FERDI)


3  Hippolyte d'Albis (Paris School of Economics)

10 Ascension Day

17 Stefania Albanesi (University of Pittsburgh)