inflation and unemployment in the long run, using quarterly US data from 1952 to 2010, and state-of-the art econometric methods … relationship between inflation and unemployment is positive in the long run. …. Using a band-pass filter approach, we find strong evidence that a positive relationship exists, where inflation leads …

evidence for a reaction of wage growth to unemployment and productivity growth. The degree of real wage flexibility tends to be …. There exists an inflation threshold, below which real wage flexibility is low. We also find that a part of the heterogeneity … in real wage flexibility and unemployment may be related to differences in the wage bargaining institutions. …

, and Iraq/Afghanistan conflicts. Inflation, unemployment, war rallies, and soldier casualties are systematic factors upon … time consistent in all three episodes, with an inflation target of zero and an unemployment target close to the natural … unemployment rate. This implies that wartime macroeconomic overheating likely causes popularity to decline. …