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

which there are multiple equilibrium unemployment rates. The model has two equations in common with the new-Keynesian model …

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. …If inflation expectations become firmly anchored at the inflation target even when average inflation deviates from the …

results suggest that DNWR may not provide a strong argument against the targeting of low inflation rates, as practiced by many …

Previous literature has found that both unemployment and inflation lower happiness. This paper extends the literature … interest rates. I find, conventionally, that both higher unemployment and higher inflation lower happiness. Interest rates are … that unemployment depresses well-being more than inflation. The least educated and the old are more concerned about …

This paper discusses the NAIRU -- the non-accelerating inflation rate of unemployment. It first considers the role of … influences both inflation and unemployment. The exact value of the NAIRU is hard to measure, however, in part because it changes …

We reformulate the Smets-Wouters (2007) framework by embedding the theory of unemployment proposed in Galí (2011a …,b). We estimate the resulting model using postwar U.S. data, while treating the unemployment rate as an additional observable … output gap. In addition, the estimated model can be used to analyze the sources of unemployment fluctuations. …