examine U.S. time series and find that, as the model predicts, unemployment fluctuations are associated with both inflation …

-run concept like the natural rate of unemployment. We examine what effect uncertainty has on the use of NAIRU in policy …

We present a signalling theory of Quantitative Easing (QE) at the zero lower bound on the short term nominal interest …

unemployment. The novel feature is that the scope for sunspot-driven volatility depends on the level of household wealth. When … wealth is high, consumer demand is largely insensitive to unemployment expectations and the economy is robust to confidence … crises. When wealth is low, a stronger precautionary motive makes demand more sensitive to unemployment expectations, and the …

The flow opportunity cost of moving from unemployment to employment consists of foregone public benefits and the … is procyclical and volatile over the business cycle. The estimated cyclicality implies far less unemployment volatility …

rigidity makes the economy prone to involuntary unemployment during external crises. This paper presents a graphical analysis …

model labor market frictions and unemployment explicitly. The present paper describes some of the essential ingredients and …

We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications … for the unemployment-inflation tradeoff and for the conduct of monetary policy.<br><br>We proceed in two steps. We first … unemployment in the constrained efficient allocation. We then focus on the implications of alternative real wage setting mechanisms …