despite substantial volatility of the unemployment rate, and in particular the common tendency of PC inflation equations to … five years but rather in the mid-1970s, when the predicted negative relation between inflation and unemployment turned out … to be utterly wrong. Instead inflation exhibited a strong positive correlation with unemployment. Failure bred success …

The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future … shocks do not systematically lead to more persistent unemployment than monetary policy shocks, so these cannot explain the … rising persistence of unemployment. Second, monetary and fiscal policies can account for only part of the evolving …

, and price and wage rigidities. Regulation affects producer entry costs, employment protection, and unemployment benefits …

recovered but unemployment lingered). This paper presents a model that captures these three facts. The key elements of the model … confidence shock. Lack-of-confidence shocks play a central role in generating jobless recoveries, for fundamental shocks, such as …

shortening the duration of the crisis and a binding zero bound. Inflation should be front loaded. Fiscal-policy multipliers can …

without any self-correcting force to full employment. The trigger for the slump is a deleveraging shock, which creates an …

interest on reserves. While their effects on output and inflation are small, these policies require major adjustments in the …

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 …

condition links the price of equity (the value of products) with marginal cost and markups, and hence with inflation dynamics …