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 …

underlying theory is the search and matching model, with workers and firms engaging in costly search leading to random matching …

period. The workers' bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence … cost determination. This set-up produces realistic labor market statistics together with inflation persistence …

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are …

nominal wages by less than the inflation rate, but seldom cut nominal wages, in contrast to the predictions of the standard … individual needs to compare the inflation rate to the wage change before it becomes clear whether the change increases or … wage achieved through increasing the nominal wage by less than the inflation rate. Although emotions may benefit individual …

the inflation rate, but they very seldom cut nominal wages. This pattern suggests that workers exhibit a special … compare the inflation rate to the wage change before it becomes clear whether the change increases or decreases utility, thus … inflation rate. Although emotions may benefit individual workers, by strengthening their bargaining position and preventing wage …