able to generate fragile equilibria. For instance, in this literature the natural unemployment rate is allowed to shift … over time depending on past unemployment. Actually, many European unemployment series seem to exhibit a unit root or … persistence. This view is questioned in the paper using German data on unemployment. A new class of time-series models, the …

policymakers at the time both had an overly optimistic view of the natural rate of unemployment and put a high priority on …

of unemployment is affected by the inflation rate. Looking at four countries, France, Germany, the Netherlands and … Switzerland, the Paper reports some preliminary evidence that the long-run rate of unemployment is a non-linear function of … ‘grease’ to the price and wage setting process. In particular, the long-run rate of unemployment is found to reach a maximum …

hysteresis arises following large shocks to unemployment, but not following small changes. These results pose a challenge to …This paper is an empirical investigation of unemployment rate series in 17 countries. The timing and size of shifts in … the mean rate of unemployment are estimated. The size of the shifts and the remaining persistence in the unemployment rate …

This paper presents an empirical examination of the importance of hysteresis in international trade. An econometric … model of export determination is developed where the presence of sunk costs causes discontinuous behaviour and hysteresis so … States. The paper finds strong evidence in favour of the presence of pricing-to-market and hysteresis only in the case of …

Spanish manufacturing firms, the paper finds sunk costs hysteresis in entry and exit to be an important factor in determining … much larger than the costs of exiting the market. Finally, although hysteresis exists, its effect on the responsiveness of …

first-order hysteresis band. Consequently uncovered interest parity does not hold and market-efficiency tests based on it …

The evolution of unemployment in West Germany and the United States stands in sharp contrast, with German unemployment … examining the relationship between inflation and unemployment, which sheds light on these developments. The theoretical section … separately, including Phillips curve `level effects', hysteresis `change effects', the error-correction mechanism, and the role …