-section, or when broken down by firms’ size. We then examine whether mismatch unemployment has risen as a result of the pandemic … driving the elevated unemployment rate. Finally, we employ a novel Bayesian SVAR framework with sign restrictions to identify …

-run Phillips curve between inflation and unemployment and a trade-off between price distortions and output hysteresis that change … hysteresis effects on unemployment and output. Price level targeting or a Taylor-rule responding to the unemployment rate can …