Berentsen, Aleksander; Menzio, Guido; Wright, Randall D. - 2009
We study the long-run relation between money, measured by inflation or interest rates, and unemployment. We first … where both money and unemployment are modeled using explicit microfoundations, integrating and extending recent work in … accounts for some but not that much of trend unemployment -- by one measure, about 1/5 of the increase during the stagflation …
