surrounding the effects of rule-based monetary policy on unemployment dynamics in the euro area and the US. We employ a Bayesian … policy ; model uncertainty ; Bayesian model averaging ; unemployment gap ; Taylor rule …

This paper analyses how labour market heterogeneity affects unemployment, productivity and business cycle dynamics that … skilled workers increases the natural rate of unemployment and reduces total factor productivity with long- run effects on the … Beveridge curves. Skill-specific labour market heterogeneity leads to a attening of the Phillips curve as wages and unemployment …

with a SVAR model by inspecting how unemployment responds to the state of the economy. We show that deviations from Okun …

, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are …

paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a … reasonable elasticity of steady state unemployment with respect to changes in benefits. The calibration of the model implies low …

deviate from the strict inflation targeting since the policy maker faces a typical unemployment/inflation trade-off. In this … (hence the output gap) since the latter also depends on the evolution of unemployment. The matching frictions add a … matches. Hence optimal monetary policy features unemployment targeting along with inflation targeting …

minimize fluctuations of unemployment around its natural rate but are uncertain about the economy's natural rates of interest … and unemployment and how private agents form expectations. In particular, we consider two models of expectations formation …, and a smaller response to the perceived unemployment gap than would be optimal if everyone had perfect knowledge of the …