implications for the unemployment-inflation tradeoff and for the conduct of monetary policy.We proceed in two steps. We first leave … firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence of labor … market frictions and real wage rigidities. We show the nature of the tradeoff between inflation and unemployment …

unemployment in the country …

increase to 250 euros per month, the simulated unemployment rate increases by 0.4 percentage point in the short term and about … 0.6 percentage point in the long term. The youth unemployment rate (ages 15-24) is anticipated to increase by up to 1 ….1 percentage points in this scenario, a relatively large increase considering the already high levels of unemployment among this …