This paper relates the size of the cyclical inflation differentials, currently observed for euro area countries, to the … cyclical inflation differentials. The proposed mechanism is a supply side one in which differences in labor market institutions …

employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

This paper investigates the importance of labor market institutions for inflation and unemployment dynamics. Using the … and their interaction is crucial for the dynamics of inflation and unemployment. We estimate a panel VAR with … deterministically varying coefficients and find that there is a profound difference in the responses of unemployment and inflation to …

, though to a lesser extent, GDP and inflation growth over the same period and pre-crisis foreign exchange reserves. Government …

results suggest that euro-area inflation forecasts have reacted less to unemployment forecasts after the start of the … financial crisis but another cost measure (energy inflation) remains significant. This finding is consistent with a flatter … better anchoring of inflation expectations and increases in structural unemployment do not seem to find support in the survey …

This paper explores the role that inflation forecasts play in the uncertainty surrounding the estimated effects of … alternative monetary rules on unemployment dynamics in the euro area and the US. We use the inflation forecasts of 8 competing … relative to the different inflation models under two rules. The results suggest that model uncertainty can be a serious issue …

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to …