01656cas a2200253 a 4500 AALejournalIMF017494 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475584783 1018-5941 BD-DhAAL BD-DhAAL Cantelmo, Alessandro. Sectoral Labor Mobility and Optimal Monetary Policy / Alessandro Cantelmo, Giovanni Melina. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In an estimated two-sector New-Keynesian model with durable and nondurable goods, an inverse relationship between sectoral labor mobility and the optimal weight the central bank should attach to durables inflation arises. The combination of nominal wage stickiness and limited labor mobility leads to a nonzero optimal weight for durables inflation even if durables prices were fully flexible. These results survive alternative calibrations and interestrate rules and point toward a non-negligible role of sectoral labor mobility for the conduct of monetary policy. Mode of access: Internet Melina, Giovanni. IMF Working Papers; Working Paper ; No. 2017/040 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/040/001.2017.issue-040-en.xml IMF e-Library