expansionary demand shock and to an inflationary supply shock under the Taylor rule, asymmetric unemployment targeting, and average … inflation targeting. For each rule we distinguish between cases with zero weight on the unemployment gap and a negative response … to rising unemployment. Across all rules, responding to unemployment leads to lower losses of employment and higher …

supranational unemployment insurance scheme. The model is calibrated to the euro area's core and periphery and features a rich …-regional correlation of unemployment and in ation increases by up to 52% and 27%, respectively, compared to the decentralised setting. The …