unemployment, and negative growth forecasting errors in a panel of 30 countries from 1960 to 2012. Consistent with the “credit …

neutral levels of key variables-potential GDP, the natural rate of unemployment, and the equilibrium real interest rate, need … actual data to find them. Further, low-frequency movements of unemployment suggest a failure of the basic idea that … low-frequency movements of unemployment. I conclude that monetary policymakers should not try to discern neutral values of …

response to demand and productivity shifts. Unemployment is sustained because the marginal value of labor is not equated across … transactions cost-mobility constraints. Contracts provide full unemployment insurance for risks that are diversifiable by pooling … atheory of consumption rigidity rather than wage rigidity. Another empirical implication is that unemployment incidence is …