This paper is concerned with two related features of the labor market-the ratio of long-term to total unemployment, R, and the relat ionship between unemployment and vacancies (the "U-V curve"). A model is developed to explain R in terms of the average probability that an unemployed person will...

In this paper we examine whether or not the NKM is .t for the purpose of providing a suitable basis for the conduct of monetary policy through inflation targeting. We focus on a number of issues: the dynamic response of inflation to interest rates in a theoretical NKM under discretion and...

This paper explores the similarity of the underlying economic problems that lead to the establishment of (a) independent central banks to operate national monetary policies and (b) independent regulatory agencies for telecommunications and other utility service industries. We show that, in both...

Unemployment and the Economists addresses economic ideas, beliefs and arguments regarding the causes and possible cures of unemployment – a matter of recurring interest and concern for economists throughout history.

The incoming Labour Government of 1997 promised a new approach to the conduct of fiscal policy. Two lessons to be learnt from previous experience were: (I) adjust for the cycle and build in a margin for uncertainty; (2) set stable fiscal rules and explain clearly fiscal policy. Although the...