报告题目：Credit Condition, Inflation and Unemployment

主讲人：Dr. Liang Wang received his Ph.D. in Economics from the University of Pennsylvania. He is an associate professor and graduate chair in the Department of Economics, University of Hawaii Manoa. His research focuses on monetary economics, macroeconomics, labor economics, and search and matching theory. In particular, he has applied dynamic stochastic general equilibrium models with micro-foundations to study inflation, price dispersion, interest rates, banking, and asset pricing. Currently, he is working on projects related to international monetary system, CBDC, and OTC markets. His work has been presented at prestigous international conferences and published in leading economics journals including Journal of Economic Theory, Journal of Economic Dynamics and Control, International Economic Review, and European Economic Review. Dr. Wang serves as an anonymous referee for many economics journals and he has been a visiting scholar to universities and central banks in different countries, including Emory University, Australian National University, Federal Reserve Bank, and Bank of Canada.

时 间：2024年7月1日（周一），16:30-18:00

地 点：经济楼A102

简 介：We study the effects of the firm's credit condition on labor market performance and the relationship between expected inflation and unemployment in a new monetarist model. Better credit condition improves labor market outcomes as firms save on their cash financing cost, improve profitability, and create more vacancies. Inflation affects unemployment through two opposing channels. First, inflation increases the firm's financing cost, which discourages job creation and increases unemployment. Second, inflation lowers wages through bargaining because unemployed workers more heavily rely on cash transactions and suffer more from inflation compared to employed workers. This encourages job creation. The overall effect of inflation on employment depends on the firm's credit condition. We calibrate the model to match U.S. data. The calibrated model suggests a downward-sloping Phillips curve with flexible wages. Finally, we find that improvement in firm credit conditions is consistent with the flattening of the Phillips curve.