interact and affect the evolution of unemployment rates and participation rates, the two main indicators of labour market … performance. Our analysis has two special features. First, apart from the two labour market states – employment and unemployment … that a shock to the net flow from unemployment to employment drive the unemployment rate and the participation rate in …

analyze transitions of workers between unemployment, regular employment and employment accompanied by welfare receipt. Working …

surrounding the effects of rule-based monetary policy on unemployment dynamics in the euro area and the US. We employ a Bayesian …

(EMU) led to lower wage growth and lower unemployment in participating countries. Following Grüner's model, monetary … national business cycles which, in turn, leads to higher unemployment risk. In order to counter-balance this effect, trade … unions lower their claims for wage mark-ups resulting in lower wage growth and lower unemployment. This paper uses …

taxation but suffers only part of the costs of union-wide inflation and higher interest rates, creating a tendency towards …

' inflation aversion and exit costs …

parameter combinations our results confirm the findings of Beetsma et al. (2001) that for symmetric inflation and output gap … central bank and the coalition of national governments is most intense under a symmetric inflation shocks when there is strong … conflict concerning the orientation of stabilisation policies. This conflict is less pronounced under an asymmetric inflation …

, average inflation and output distortions. However, as more members enter the monetary union, the fiscal disciplining effect of …