In the U.S. labor market unemployed individuals that are actively looking for work are more than three times as likely to become employed as those individuals that are not actively looking for work and are considered to be out of the labor force (OLF). Yet, on average, every month twice as many...

An introduction to the special issue on modern macroeconomic theory.

Since the fall of 2008, the amount of outstanding reserves on the Federal Reserve's balance sheet has increased from about 100 billion dollars to more than 1 trillion dollars. There is some concern that the magnitude of outstanding reserves might affect the ability of the Federal Reserve to...

Unemployment and labor force participation (LFP) are usually negatively correlated over the business cycle, that is, once the unemployment rate starts to decline the LFP rate starts to increase after about half a year. Using gross flow data on labor market transitions, we show that this cyclical...

An introduction to the special issue on modern macroeconomic theory.

Since the fall of 2008, the amount of outstanding reserves on the Federal Reserve's balance sheet has increased from about 100 billion dollars to more than 1 trillion dollars. There is some concern that the magnitude of outstanding reserves might affect the ability of the Federal Reserve to...