cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

that the positive income shock is followed by a decrease in unemployment in all economic activity groups during the initial … periods except the unemployment in the Electricity sector and the Community Services sector. A positive money shock decreases … positive interbank interest rate shock increases the unemployment in all economic activities at the initial levels but derives …

relative net demand shock against the low skilled (like the US) during this period. It turns out that only workers with an … educational level below apprenticeship were affected by such a shock. Furthermore, I test whether wages reacted flexibly to this … shock and find that they were rigid, which can explain the relative unemployment increase for this group. Finally, I test …

labor demand and the wage bargaining process. The analysis of the interaction of shock spillovers and benefit system focuses …

highest in Germany, followed by France, and Italy. However, even in Germany, the accommodation of a shock to unemployment by …

market shock is provoked in the home country or originates from abroad. We also point out how our results extend to two …