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unemployment on inflation, for given expected inflation, decreased until the early 1990s, but has remained roughly stable since …
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provides a natural interpretation for the dynamic inflation-unemployment relation found in the data. …
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Besides widening wage inequality, if the demand for skills continues to increase it will probably reduce aggregate employment. Policy measures to offset the impact of increased demand for skills on wage inequality and employment would be very costly. Moreover, given local funding of primary and...
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E2, J3, J5, J6 </AbstractSection> Copyright Blanchard et al.; licensee Springer. 2014
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We develop a utility based model of fluctuations, with nominal rigidities, and unemployment. In doing so, we combine …-Mortensen-Pissarides model, with its focus on labor market frictions and unemployment. In developing this model, we proceed in two steps. We … effect on unemployment in the constrained efficient allocation. We then focus on the implications of alternative real wage …
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