While unemployment rates in Europe declined after the global financial crisis until 2018/19, the incidence of long …-term unemployment, the share of people who have been unemployed for more than one year to the total unemployed, remained high. Moreover …, the COVID-19 pandemic could aggravate the long-term unemployment. This paper explores factors associated with long …

The negative and stable relationship between an economy’s aggregate demand conditions and overall unemployment is well …-documented. We show that there is a large degree of heterogeneity in the cyclical sensitivities of unemployment across worker and … economy groups. First, unemployment is more than twice as sensitive to aggregate demand in advanced as in emerging market and …

In 2021-22, inflation in Europe soared to multidecade highs, consistently exceeding policymakers’ forecasts and … surprising with its wide cross-country dispersion. This paper analyzes the key drivers of the inflation surge in Europe and its … prices, and, consequently, to larger increases in inflation rates. Across Europe, inflation also appears to have become …

-run Phillips curve between inflation and unemployment and a trade-off between price distortions and output hysteresis that change …Standard New Keynesian (NK) models feature an optimal inflation target well below two percent, limited welfare losses … the welfare-maximizing inflation level. For a plausible set of parameters, the optimal inflation target is in excess of …

raising concerns of youth unemployment. This paper explores the effects of inflation on private employment growth in SSA using …Covid-19 and war-induced commodity price fluctuations, and broadening price pressures have led to a surge in inflation … inflation and job creation in SSA, with job creation being negatively correlated with inflation rate when the latter is above 14 …

The extent of fiscal transparency in Western Europe has varied over the centuries. Although ancient Greek, Roman, and …

wage growth and inflation in Europe and factors that influence the strength of the passthrough from labor costs to prices …. Historically, wage growth has led to higher inflation, but the impact has weakened since 2009. Empirical analysis suggests that the … passthrough from wage growth to inflation is significantly lower in periods of subdued inflation and inflation expectations …

inflation. Through a novel consumption deflator decomposition, we show that import prices account for 40 percent of the average … convergence of inflation to target over the next two years. Monetary policy will thus need to remain restrictive to anchor …

This paper presents novel empirical evidence on the labor market integration of migrants across Europe. It investigates …