unemployment rate. I show that the connection between changes in the stock market and changes in the unemployment rate has remained … unemployment. …

spirit of Blanchard and Summers (1988), the model can generate multiple equilibria, with a low-quits/high-unemployment … equilibrium coexisting with a high-quits/low-unemployment equilibrium. Under weak conditions, low-unemployment equilibria Pareto … dominate high-unemployment equilibria. Mobility premia improve aggregate welfare but may increase unemployment. …

cycle fact: expansions and contractions in output are equally brief and violent but contractions in employment are briefer … and more violent than expansions. The difference arises because employment typically lags output around peaks but both …

This paper develops a political economy model of multiple unemployment equilibria to provide a theory of an endogenous … natural rate of unemployment. This model is applied to the UK and the US interwar period which is remembered as the decade of … mass unemployment. The theory here sees the natural rate and the associated path of unemployment as a reaction to shocks …

Monetary policy affects both real variables, such as employment, unemployment and output and nominal variables such as …

This paper develops a theory characterizing the effects of fiscal policy on unemployment over the business cycle. The … theory is based on a model of equilibrium unemployment in which jobs are rationed in recessions. Fiscal policy in the form of … government spending on public-sector jobs reduces unemployment, especially during recessions: the fiscal multiplier …

which there are multiple equilibrium unemployment rates. The model has two equations in common with the new-Keynesian model …