We consider a dynamic general equilibrium model with collective wage bargaining and investigate how unemployment … unemployment persistence by its adverse impact on growth, and may even destabilize the adjustment path. If this is the case, a … future fiscal consolidation is needed which further raises unemployment. These results are consistent with empirical evidence …

, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are …

sector in a model of equilibrium unemployment. We find that higher firing costs may even reduce temporary work agency …

inflation-unemployment trade-off we account for a time-varying inflation trend to control for the part of inflation that is not … unemployment and inflation to address the simultaneity problem in Phillips curve estimations. Applying the method of Rigobon and … affected by the cyclical component of unemployment. In addition we use shifts in the relative volatility of shocks to …

-induced) outside option of workers, such as a decrease in unemployment benefits, public wages or, to a lesser extent, public …

wages and labor market shocks feed into the inflation process and derive monetary policy implications. Towards that aim, we …

, using a new and large employer survey on wage and price setting behaviour for Germany. We observe that wage freezes are more …

four major European economies (France, Germany, Italy and the United Kingdom). As opposed to the benchmark rational … experts? inflation expectations, we find that the model adequately captures the dynamics of household inflation expectations …