relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes …, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of … inflation decreases: this implies a long-run trade-off also between the volatility of unemployment and that of wage inflation …

We propose a theory of low-frequency movements in unemployment based on asymmetric real wage rigidities. The theory … generates two main predictions: long-run unemployment increases with (i) a fall in long-run productivity growth and (ii) a rise …-run unemployment over the 1980s and its rise during the late 2000s …

Spain has the most serious and persistent unemployment problem in Europe, with an unemployment rate that reached 24 ….6 percent in early 1994. This paper explores the characteristics of this unemployment problem, its causes, and provides a brief … adjust. The effects of generous unemployment benefits and the large underground economy may explain 6–12 percentage points of …

may have increased unemployment. It is shown that it is likely to be so if they are associated with an increase in the …

-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 …