labor input, but it predicts a strong counterfactually negative long run relationship between inflation and unemployment … negative long run relationship between trend inflation and unemployment provides indirect evidence against the proposed …. This finding is robust to including a microeconomically realistic degree of indexation of wages to inflation. The lack of a …

labor input, but it predicts a strong counterfactually negative long run relationship between inflation and unemployment … negative long run relationship between trend inflation and unemployment provides indirect evidence against the proposed …. -- Sticky wages ; staggered Nash bargaining ; trend inflation ; unemployment ; search and matching …

The low rate of inflation observed in the U.S. over the entire past decade is hard to reconcile with traditional … measures of labor market slack. We show that an alternative notion of slack that encompasses workers' propensity to search on … the job explains this missing inflation. We derive this novel concept of slack from a model in which a drop in the on …

decreasing in the substitutability of worker types. This cost of search is then decomposed into three components: unemployment … workers being more choosy. The resulting equilibrium is not efficient. Unemployment benefits can reduce the loss by serving as …

rates are consistent with weakly increasing returns in matching. The resulting equilibrium is not efficient. Unemployment …