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

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

Recent critiques have demonstrated that existing attempts to account for the unemployment volatility puzzle of search … reproduces the observed fluctuations in unemployment because hiring a worker is a risky investment with long-duration surplus … benefit from creating new matches greatly drops, leading to a large decline in job vacancies and an increase in unemployment …

This paper presents a theory of the monetary transmission mechanism in a monetary version of Farmer's (2009) model in … which there are multiple equilibrium unemployment rates. The model has two equations in common with the new-Keynesian model …

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

establishments; b) the amplitude and propagation of cyclical fluctuations in flows between employment and unemployment; c) the … negative comovement of unemployment and vacancies in the form of the Beveridge curve; and d) the dynamics of the distribution …

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 …