The conventional wisdom that inflation and unemployment are unrelated in the long-run implies that these phenomena can … NAIRU. The labour macro literature tries to explain unemployment dynamics and determine the real economic factors that drive … the natural rate of unemployment. We show that the orthodox view that the New Keynesian Phillips curve is vertical in the …

This paper analyses the relation between US inflation and unemployment from the perspective of "frictional growth," a … has not only persistent, but permanent real effects, giving rise to a long-run inflation-unemployment tradeoff. We … the US unemployment and inflation trajectories during the nineties. …

This paper challenges what is the standard account of UK unemployment, namely that the major swings in unemployment … over the past 25 years are due predominantly to movements in the underlying empirical "natural rate of unemployment" (NRU … unemployment are due, instead, to very prolonged after-effects of persistent (transitory but long-lasting) shocks. We argue that (a …