-specific labour imply a sufficient degree of real rigidity, and so can reproduce inflation dynamics well. However, they imply too … little real rigidity and, so, too volatile inflation, owing to strong responses of marginal wages and hours per employee … the responses of wages, inflation and employment. …

the unemployment, this paper tries to answer the following question: Is a nominal permanent disinflation compatible with … short-run unemployment costs but also with long-run output benefits? The answer to this question crucially depends on the …

The Phillips curve has flattened in Spain over 1995-2006: unemployment has fallen by 15 percentage points, with roughly … constant inflation. This change has been more pronounced than elsewhere. We argue that this stems from the immigration boom in …' labor supply or bargaining power differ. Estimation of the curve for Spain indicates that the fall in unemployment since …

This paper studies the effect of labor market reform, in the form of reductions in firing costs and unemployment … benefits, on inflation volatility. With this purpose, we build a New Keynesian model with search and matching frictions in the … inflation in response to shocks, by affecting the volatility of the three components of real marginal costs (hiring costs …

and sometimes the unconditional means of the nominal rate, inflation and the output gap are strongly affected by …

An exogenous oil price shock raises inflation and contracts output, similar to a negative productivity shock. In the … standard New Keynesian model, however, this does not generate a tradeoff between inflation and output gap volatility: under a … strict inflation targeting policy, the output decline is exactly equal to the efficient output contraction in response to the …

We analyse the incidence of endogenous entry and firm TFP-heterogeneity on the response of aggregate inflation to … distribution of firms in Spain. We then compare the inflation response to technology, interest rate and entry cost shocks, among … others. We find that structures in which large (more productive) firms predominate tend to deliver more muted inflation …

Political Science on June 4th. It starts by asking what factors have been behind the remarkable retreat of inflation that has …

and its implications for US output, hours and inflation. Second we evaluate the extent to which that responses can be …