TY  - RPRT
        AU  - Lehmann, Etienne
        TI  - A Search Model of Unemployment and Inflation
        PY  - 2006/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2194
        UR  - https://www.iza.org/publications/dp2194
        AB  - In this paper, I introduce money in the standard labor-matching model (Mortensen and Pissarides 1999, Pissarides 2000). A double coincidence problem makes Fiat Money necessary as a medium of exchange. In the long-run, a rise in the rate of money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal monetary growth rate decreases with the workers’ bargaining power, the level of unemployment benefits and the payroll tax rate.
        KW  - search-matching
KW  - unemployment
KW  - Friedman rule
KW  - inflation
        ER  -