inflation and labor market dynamics. In particular, it fails to generate a Beveridge curve: vacancies and unemployment are … market flows to more realistic values. However, inflation dynamics are only weakly affected by real wage rigidity. This is … marginal cost that is relevant for inflation dynamics via the Phillips curve contains a dynamic component that does not …

the modern theory of unemployment. I write down an unobserved components model and identify the cyclical and trend … subsequent data additions, policy relevance and its tight link with the theory. …

, we study the implications of different inflation regimes on the racial unemployment gap. Higher trend inflation increases …

" - although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … asserted that, in the context of the new Phillips curve (NPC), inflation is a jump variable. We argue that this "persistency … equilibrium setting (in which real variables not only affect inflation, but are also influenced by it), standard wage …