This paper studies the impact of informality on the long-run relationship between inflation and unemployment in … developing economies. I present a dynamic general equilibrium model with informality in both labor and goods markets and where … money and credit coexist. An increase in inflation affects unemployment through two channels: the matching channel and the …

We argue that long-run inflation has nonlinear and state-dependent effects on unemployment, output, and welfare. Using … anticipated inflation and unemployment. Second, there is also a positive correlation between anticipated inflation and … unemployment volatility. Third, the long-run inflation-unemployment relationship is not only positive, but also stronger when …

unemployment. Our model succeeds in replicating the empirical fact of a downward sloping Phillips curve for low inflation rates and … consumption, more attractive. Less consumption is associated with less output and therefore higher unemployment. To the contrary … increase in unemployment. …

We study the nonlinearities present in a standard monetary labor search model modified to have two groups of workers … facing exogenous differences in the job finding and separation rates. We use our setting to study the racial unemployment gap … two groups both in the level and volatility of unemployment. We show that the racial unemployment gap is counter …