We show that, in settings where meetings can be multilateral, the allocation rule proposed by Mortensen (1982) can be relatively straightforward to implement: as a local auction conducted by sellers. The implications of using this mechanism in a simple model of the labor market are then...

Conventional wisdom holds that, in the long run, the Phillips curve is vertical. We re-examine the relationship between inflation and unemployment in the long run, using quarterly US data from 1952 to 2010, and state-of-the art econometric methods. Using a band-pass filter approach, we find...

This is an introduction and overview of the special issue on "Macroeconomics with frictions".