inflation-unemployment trade-off we account for a time-varying inflation trend to control for the part of inflation that is not … affected by the cyclical component of unemployment. In addition we use shifts in the relative volatility of shocks to … unemployment and inflation to address the simultaneity problem in Phillips curve estimations. Applying the method of Rigobon and …

employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

We consider a dynamic general equilibrium model with collective wage bargaining and investigate how unemployment … unemployment persistence by its adverse impact on growth, and may even destabilize the adjustment path. If this is the case, a … future fiscal consolidation is needed which further raises unemployment. These results are consistent with empirical evidence …

In a New Keynesian DSGE model with labor market frictions and liquidity-constrained consumers aggregate unemployment is … reacts very differently from the group of liquidity-constrained consumers implying that the unemployment rate is likely to …'s parameters, we find that the size of the fiscal (unemployment) multiplier increases with i) highly sticky prices, ii) high …