This paper explores the interrelation between the degree of unemployment persistence and the unemployment … unemployment and making unemployment less persistent, the less effective will be the growth-promoting supply-side policies (such as … training schemes) in reducing unemployment. …

description of the U.S. business cycle, and that the inflation/unemployment trade-off facing monetary policymakers is …We study the design of monetary policy in an estimated model with sticky prices, search and matching frictions, and … staggered nominal wage bargaining. We find that the estimated natural rate of unemployment is consistent with the NBER …

This paper surveys the use of search and matching models in macroeconomics. It outlines the standard model, discusses …

nominal and real wage rigidity) and social preferences regarding inflation, employment, and real wages. We also calibrate our … those that affect the long-run unemployment rate. …

the shock: When the monetary policy shock takes place in the first two quarters of the year, the response of output is … quick, sizable, and dies out at a relatively fast pace. In contrast, output responds very little when the shock takes place …

. Whereas our methodology is general, we focus on an extended macro-model with unobservable processes for the inflation target … inflation target dominates the variation in the 'level factor' whereas monetary policy shocks dominate the variation in the …

This paper introduces a new indicator of core inflation for New Zealand, estimated using a dynamic factor model and … core indicator with a wide range of other ‘core inflation’ measures estimated from disaggregate consumer prices, such as … the weighted median and the trimmed mean. The medium term inflation target of Reserve Bank of New Zealand is used as a …

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are … quit decisions. This approach obviates the need for a matching function. On this theoretical basis, we argue that the … matching function is vulnerable to the Lucas critique. Our calibrated model for the U.S. economy can account for important …