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

has been a worsening in the trade-off between unemployment and inflation. The poor unemployment/inflation trade-off is due … to the neglect of skill training and education (causing skill shortages) and to the build-up of long-term unemployment …

The literature on monetary policy games establishes that policy makers' attempts to boost employment above the 'natural … the employment level. This paper shows that this last neutrality result hinges crucially on the assumption that wage … maker's inflation aversion may have a systematic effect on equilibrium employment even if agents have rational expectations …

unionized labour markets. It is shown that the effects of the formation of a monetary union depend on several labour market … features, such as the degree of centralization of wage bargaining, labour unions' inflation aversion and the degree of … substitutability between the labour of different unions. In particular, the switch from national monetary policies to a unified …

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 …

centralization of wage bargaining and of the interaction between those institutional variables, on real wages, unemployment and … inflation. The labour market is characterized by the degree of centralization of bargaining and by the degree of trade unions …) triggers two opposite effects on real wages, unemployment and inflation. The decrease in the number of unions reduces the …

This paper explores the interrelation between the degree of unemployment persistence and the unemployment …-productivity trade-off. The analysis suggests that the more effective are structural labour market policies (designed to change labour … unemployment and making unemployment less persistent, the less effective will be the growth-promoting supply-side policies (such as …