Money supply shocks drive cyclical labor market fluctuations, study finds.
The article explores how changes in the amount of money in circulation can affect the job market during economic ups and downs. By using a model that considers competition among businesses and prices that don't change quickly, the researchers found that money supply shocks can have a significant impact on the labor market. This means that fluctuations in the amount of money available can influence how many jobs are available and how easy it is to find work.