expansionary demand shock and to an inflationary supply shock under the Taylor rule, asymmetric unemployment targeting, and average … inflation targeting. For each rule we distinguish between cases with zero weight on the unemployment gap and a negative response … to rising unemployment. Across all rules, responding to unemployment leads to lower losses of employment and higher …

supranational unemployment insurance scheme. The model is calibrated to the euro area's core and periphery and features a rich …-regional correlation of unemployment and in ation increases by up to 52% and 27%, respectively, compared to the decentralised setting. The …

This paper develops a model with multiple steady states (low tax and unemployment rate versus high tax and unemployment … European unemployment rates observed during the seventies. The explanation given is that even if the unemployment rate would … job creation remains low making the return to a low unemployment rate impossible. The paper shows that in some cases …

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