inflation and unemployment. We focus on the G7 economies plus Spain, and use monthly data –high-frequency data in a macro …

inflation targeting, exchange rate management benefits households in the tradable goods sector but in the long run these …

and real wage rigidities. In our analysis, we focus on the differentials in inflation and unemployment between countries … inflation and unemployment differentials. Second, we find that asymmetries in labor market structures tend to increase the … volatility of both inflation and unemployment differentials. Finally, we show that it is important to take into account the …

variables (typically the output gap) and solving the model for inflation in terms of the observables. In practice, the equation … not be appropriate. Thirdly, there are arguments that other variables, e.g. interest rates, foreign inflation and foreign … theoretically consistent measure of the steady state and provides a natural route for foreign inflation or output gap to enter the …

in the estimation of an employment regression, focusing on the effect of exchange rate movements. Our estimates indicate …

with rational expectations. We extend a standard New Keynesian model with a zero-lower bound on inflation expectations …