-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a … unemployment on inflation, for given expected inflation, decreased until the early 1990s, but has remained roughly stable since …

The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future … shocks do not systematically lead to more persistent unemployment than monetary policy shocks, so these cannot explain the … rising persistence of unemployment. Second, monetary and fiscal policies can account for only part of the evolving …

This paper argues that hysteresis helps explain the long-run behavior of unemployment. The natural rate of unemployment … is influenced by the path of actual unemployment, and hence by shifts in aggregate demand. I review past evidence for … hysteresis effects and present new evidence for 20 developed countries. A central finding is that large increases in the natural …

The unemployment rate in the euro area appears to contain a significant nonstationary component, suggesting that some … Keynesian model with unemployment, and assess their empirical relevance …

European unemployment is widely regarded as a problem of excessive real wages. This view as it is usually expressed …

A search and matching model, when calibrated to the mean and volatility of unemployment in the postwar sample, can … potentially explain the large unemployment dynamics in the Great Depression. The limited response of wages to labor market … conditions from credible bargaining and the congestion externality from matching frictions cause the unemployment rate to rise …

hysteresis embodying the idea that the equilibrium unemployment rate depends on the history of the actual unemployment rate. This …The recent European experience of high persistent unemployment has led to the development of theories of unemployment … paper summarizes two directions of research on hysteresis that appear especially promising. Membership theories are based on …

European unemployment has been steadily increasing for the last 15 years and isexpected to remain very high for many … years to come. In this paper, we argue thatthis fact implies that shocks have much more persistent effects on unemployment … and firms, shocks which affect actual unemployment tend also to affectequilibrium unemployment. We then confront the …

unemployment rate has been about 0.8 percentage points higher than if average inflation had been on target. This is a large … unemployment cost of undershooting the inflation target …