labor market and skill obsolescence from long-term unemployment. The model can account for key features of the Great … Recession: a decline in productivity growth, the relative stability of inflation despite a pronounced fall in output (the … aggregate demand raises unemployment and the training costs associated with skill obsolescence. Lower employment hinders …

This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone …. We use a New Keynesian model with unemployment to predict the effects of different labor market institutions on … output volatility, they do not seem to have much of an effect on inflation volatility. Our estimations indicate that the …

labor markets. In a calibrated version of the model, efficient fluctuations feature highly volatile unemployment and job …