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What We Know and Do Not Know About the Natural Rate of Unemployment

Blanchard, Olivier; Katz, Lawrence F. - National Bureau of Economic Research (NBER) - 1996

Over the past three decades, a large amount of research has attempted to identify the determinants of the natural rate of unemployment. It is this body of work we assess in this paper. We reach two main conclusions. First, there has been considerable theoretical progress over the past 30 years....

Persistent link: https://www.econbiz.de/10005718798

Labor Markets and Monetary Policy: A New-Keynesian Model with Unemployment

Blanchard, Olivier; Gali, Jordi - National Bureau of Economic Research (NBER) - 2008

for the unemployment-inflation tradeoff and for the conduct of monetary policy.<br><br>We proceed in two steps. We first … setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence … of labor market frictions and real wage rigidities. We show the nature of the tradeoff between inflation and unemployment …

Persistent link: https://www.econbiz.de/10005248798

Real Wage Rigidities and the New Keynesian Model

Blanchard, Olivier; Gali, Jordi - National Bureau of Economic Research (NBER) - 2005

Most central banks perceive a trade-off between stabilizing inflation and stabilizing the gap between output and … inflation is equivalent to stabilizing the welfare-relevant output gap. In this paper, we argue that this property of the new … a trade-off between stabilizing inflation and stabilizing the welfare-relevant output gap. We show that not only does …

Persistent link: https://www.econbiz.de/10005085258

The Macroeconomic Effects of Oil Shocks: Why are the 2000s So Different from the 1970s?

Blanchard, Olivier; Gali, Jordi - National Bureau of Economic Research (NBER) - 2007

for the mild effects on inflation and economic activity of the recent increase in the price of oil: (a) good luck (i …

Persistent link: https://www.econbiz.de/10005829032

An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output

Blanchard, Olivier; Perotti, Roberto - National Bureau of Economic Research (NBER) - 1999

This paper characterizes the dynamic effects of shocks in government spending and taxes on economic activity in the United States in the post-war period. It does so by using a mixed structural VAR/event study approach. Identification is achieved by using institutional information about the tax...

Persistent link: https://www.econbiz.de/10005829344

A New Keynesian Model with Unemployment

Blanchard, Olivier; Gali, Jordi - Institut für Weltwirtschaft (IfW) - 2007

setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence … of real wage rigidities. We show the nature of the tradeoff between inflation and unemployment stabilization, and we draw …

Persistent link: https://www.econbiz.de/10005700626

Growth Forecast Errors and Fiscal Multipliers

Blanchard, Olivier; Leigh, Daniel - National Bureau of Economic Research (NBER) - 2013

This paper investigates the relation between growth forecast errors and planned fiscal consolidation during the crisis. We find that, in advanced economies, stronger planned fiscal consolidation has been associated with lower growth than expected, with the relation being particularly strong,...

Persistent link: https://www.econbiz.de/10010785642

News, Noise, and Fluctuations: An Empirical Exploration

Blanchard, Olivier; L'Huillier, Jean-Paul; Lorenzoni, Guido - National Bureau of Economic Research (NBER) - 2009

We explore empirically models of aggregate fluctuations with two basic ingredients: agents form anticipations about the future based on noisy sources of information; these anticipations affect spending and output in the short run. Our objective is to separate fluctuations due to actual changes...

Persistent link: https://www.econbiz.de/10004991921