flexibility has also affected how firms adjust employment in Germany. Using a rich microeconomic dataset, we show that firms with … the key driver of the unusually small increase in German unemployment in the Great Recession. …

This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone …. We use a New Keynesian model with unemployment to predict the effects of different labor market institutions on … on inflation volatility, which can also be rationalized by our theoretical model. …

state contingent inflation taxes/subsidies to smooth those rents. Hence, in the optimal Ramsey plan, inflation deviates from … zero and the optimal volatility of inflation is an increasing function of firing costs. The optimal rule should react to … employment alongside inflation. …

and support from the West. We argue that East Germany is in trouble precisely because of the support it has received. This … underutilization, and unemployment arising from the decline of the tradable sector. …

density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our …

This paper addresses the question of why high unemployment rates tend to persist even after their proximate causes have … persistence versus relatively high microeconomic labor market flow numbers. We calibrate the model for East Germany and examine …

This paper analyzes Germany's unusual labor market experience during the Great Recession. We estimate a general … equilibrium model with a detailed labor market block for post-unification Germany. This allows us to disentangle the role of …