for the unemployment-inflation trade- off and for the conduct of monetary policy. We proceed in two steps. We first leave … firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence of labor … market frictions and real wage rigidities. We show the nature of the tradeoff between inflation and unemployment …

model labor market frictions and unemployment explicitly. This chapter describes some of the essential ingredients and …

provides a natural interpretation for the dynamic inflation - unemployment relation found in the data …Most central banks perceive a trade-off between stabilizing inflation and stabilizing the gap between output and … inflation is equivalent to stabilizing the welfare-relevant output gap. In this paper, we argue that this property of the new …

setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence … of real wage rigidities. We show the nature of the tradeoff between inflation and unemployment stabilization, and we draw …We develop a utility based model of fluctuations, with nominal rigidities, and unemployment. In doing so, we combine …

for the unemployment-inflation tradeoff and for the conduct of monetary policy.lt;brgt;lt;brgt;We proceed in two steps. We … staggered price setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by …We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications …

setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence … of real wage rigidities. We show the nature of the tradeoff between inflation and unemployment stabilization, and we draw …We develop a utility based model of fluctuations, with nominal rigidities, and unemployment. In doing so, we combine …

approach gradually a new steady state with positive average inflation. Around that steady state, the optimal policy implies … well defined (second-best) paths for inflation and output in response to shocks to the natural rate. Under plausible …

particular, it provides a natural interpretation for the dynamic inflation--unemployment relation found in the data …Most central banks perceive a trade-off between stabilizing inflation and stabilizing the gap between output and … inflation is equivalent to stabilizing the welfare-relevant output gap. In this paper, we argue that this property of the new …