We examine the relationship between inflation and unemployment in the long run,using quarterly US data from 1952 to 2010. Using a band-pass filter approach, we find strong evidence that a positive relationship exists, where inflation leads unemployment by some 3 to 3.5 years, in cycles that last...

We examine the relationship between inflation and unemployment in the long run, using quarterly US data from 1952 to 2010. Using a band-pass filter approach, we find strong evidence that a positive relationship exists, where inflation leads unemployment by some 3 to 3 1/2 years, in cycles that...

We examine the relationship between inflation and unemployment in the long run, using quarterly US data from 1952 to 2010. Using a band-pass filter approach, we find strong evidence that a positive relationship exists, where inflation leads unemployment by some 3 to 3 1/2 years, in cycles that...

This paper separates the "natural" rate of unemployment into two components: frictional and long-term unemployment. A simple labour market model with spatial separation and Markov production shocks is presented. The existence of a stationary equilibrium is proved, and its properties are...

A simple labor market with spatial separation and Markov production shocks is presented. In the stationary equilibrium, some workers are frictionally unemployed and others are long-term unemployed. The amounts of frictional and long-term unemployment at each location depend on its recent history...