recovered but unemployment lingered). This paper presents a model that captures these three facts. The key elements of the model …

rate creates a negative pecuniary externality. This peg-induced externality is shown to cause unemployment, overborrowing … unemployment rate by 10 percentage points, reduce average external debt by more than 50 percent, and increase welfare by over 7 …

unemployment and vacancies. Following suggestions by Robert Hall and Robert Shimer, this paper shows that a relatively standard … simulate moments of an artificial economy with and without sticky wages and we document the dependence of unemployment and …

We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications … for the unemployment-inflation tradeoff and for the conduct of monetary policy.lt;brgt;lt;brgt;We proceed in two steps. We … effect on unemployment in the constrained efficient allocation. We then focus on the implications of alternative real wage …

a burst of layoffs. Unemployment rises because jobs are hard to find, not because an unusual number of people are thrown … into unemployment …

rigidity makes the economy prone to involuntary unemployment during external crises. This paper presents a graphical analysis …

the unskilled. By contrast, in Europe it is undoubtedly the rise and persistence of unemployment. Technology has been … identified as a key reason for the rising US wage inequality, while labor market rigidities are often cited as a key reason for … European unemployment. This paper seeks to provide a unified account of these major factor market developments. It models the …

particular, it provides a natural interpretation for the dynamic inflation--unemployment relation found in the data …

The paper presents a new empirical regularity between the volatility of productivity growth and long-run unemployment … shown to have the potential to rationalize this finding. The model tends to fit U.S. long-run unemployment better than a …