This paper argues that there is a nonzero inflation-unemployment tradeoff in the long-run due to frictional growth, a … unemployment. Hence, we estimate an interactive dynamics model for the US that includes wage-price setting and labour market … equations. We then evaluate the inflation-unemployment tradeoff and assess the impact of productivity, money growth, budget …

The conventional wisdom that inflation and unemployment are unrelated in the long-run implies the compartmentalisation … of macroeconomics. While one branch of the literature models inflation dynamics and estimates the unemployment rate … compatible with inflation stability, another one determines the real economic factors that drive the natural rate of unemployment …

underutilization, and unemployment arising from the decline of the tradable sector. …

underutilization, and unemployment arising from the decline of the tradeable sector. …

This paper addresses the question of why prolonged regional unemployment differentials tend to persist even after their … proximate causes have been reversed (e.g., after wages in the highunemployment regions have fallen relative to those in the low-unemployment …

sluggish. Job creation and job destruction are negatively correlated. And the volatility of unemployment is much larger than in …

This paper addresses the question of why high unemployment rates tend to persist even after their proximate causes have …