We distinguish and assess three fundamental views of the labor market regarding the movements in unemployment: (i) the … that all the short-run fluctuations automatically turn into long-run changes in the unemployment rate. We assert the …

This paper addresses the question of why high unemployment rates tend to persist even after their proximate causes have … persistence versus relatively high microeconomic labor market flow numbers. We calibrate the model for East Germany and examine …

This paper provides a critique of the "unemployment invariance hypothesis," according to which the behavior of the … labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity, and … equilibrating mechanisms to ensure unemployment invariance and that other markets may perform part of the equilibrating process as …

and support from the West. We argue that East Germany is in trouble precisely because of the support it has received. This … underutilization, and unemployment arising from the decline of the tradable sector. …

rationale for a prolonged inverse relation between inflation and unemployment. The paper suggests that the interaction of … inflation persistence and unemployment persistence may offer a possible explanation of high and prolonged European unemployment. …This paper provides a new explanation of why inflation is sluggish in response to aggregate demand shocks and why …