In this paper we study the relationship between labour market institutions and monetary policy. We use a simple … macroeconomic framework to show how optimal monetary policy rules depend on labour institutions (labour adjustment costs, and … nominal and real wage rigidity) and social preferences regarding inflation, employment, and real wages. We also calibrate our …

In this paper we analyse the relationship between unemployment and consumption. We study this relationship with panel … indicate that in the South consumption should fall more than in the North when the male household head becomes unemployed. This … empirical results indicate that an increase in the duration of unemployment spells of male household heads is associated with …

In this paper, we study the effects of unemployment benefit duration and the business cycle on unemployment duration …. We construct durations for individuals entering unemployment from a longitudinal sample of Spanish men in 1987 …–94. Estimated discrete hazard models indicate that receipt of unemployment benefits significantly reduces the hazard of leaving …

This paper investigates the implications of budgetary policies for consumption and economic growth. We present a model … a rise in government debt, financed by lump-sum taxes, increases the share of private consumption to national income and … reduces the long-run growth rate. We also show that a rise in government consumption financed by lump-sum taxes reduces both …

natural rate of unemployment. In addition, because of differential inflation across countries, real exchange rates become …

We extend the `rational-partisan' model of inflation to allow for the effects of unemployment persistence on the … to the failure of political parties to precommit to price stability, in the light of unemployment persistence. Elections … are associated with higher inflation, with the exception of the Thatcher period. There is no evidence that the Labour …

This paper formulates a discrete-time model to study the effects of firing costs on labour demand by a firm facing …'s marginal propensities to hire and fire, and may increase or decrease its average steady-state labour demand. …

This paper constructs a theoretical model to study the effects on employment of the introduction of flexible labour … data. The model predicts that such contracts increase the size of the employment response to aggregate shocks, while … decreasing its persistence, and that employment overshoots its long-run level at the time these contracts are introduced …

This paper analyzes the strikingly different response of unemployment to the Great Recession in France and Spain. Their … labor market institutions are similar and their unemployment rates just before the crisis were both around 8%. Yet, in … France, unemployment rate has increased by 2 percentage points, whereas in Spain it has shot up to 19% by the end of 2009. We …

recent differential unemployment persistence in our sample of countries: first, sluggishness in labour demand, and second …In this paper we present an investigation of unemployment persistence in Japan, the United States and fourteen European … economies. We concentrate on the sources of slow adjustment in the labour market, such as sluggishness in labour demand and …