not efficient. Inflation is detrimental to unemployment. …This paper builds a macroeconomic model of equilibrium unemployment in which firms persistently face difficulties in …, equilibrium unemployment is a U-shaped function of the ratio of total demand to total supply on this market. When prices are at …

inflation/unemployment responses to money growth shocks. SVAR (structural vector autoregression) and GMM (generalised method of … chain reactions, and provides new evidence on the long-run inflation-unemployment tradeoff in the US. It is argued that … and real sides of the economy are symbiotic. In the light of the significant and robust long-run inflation-unemployment …

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 …

Unemployment may depend on equilibrium in other markets than the labor markets. This paper adresses this old idea by … effect of financial frictions on equilibrium unemployment is amplified by goods market frictions and vice versa. …

contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high … incomes experience guilt. The former seek to raise their income, and latter seek to reduce it. The greater the inflation rate …, a rise in the inflation rate leads workers to supply more labor over the contract period, generating a significant …