Fabiani, Silvia; Mestre, Ricardo - 2021
This paper addresses the issue of measuring the NAIRU for the euro area and assessing the robustness and precision of … cyclical unemployment and the output gap with a Phillips curve and stochastic laws of motion for the NAIRU and potential output …-wide NAIRU that is robust to changes in the underlying models. This robustness is shown to hold both in terms of the mean - i …