This paper studies the dynamics of unemployment (u) and its natural rate (u*), with u* measured by real-time estimates … for 29 countries from the OECD. We find strong evidence of hysteresis: an innovation in u causes u* to change in the same …

modern labour market literature NAIRU is defined as the rate of unemployment at which inflation stabilizes in the absence of … any wage-price surprises. Conventional thinking about the equilibrium unemployment rate assumes that in the long run NAIRU … arise even in simple log-linear wage-price models. Furthermore we provide a survey on a number of "hysteresis …

modern labour market literature NAIRU is defined as the rate of unemployment at which inflation stabilises in the absence of … any wage-price surprises. Conventional thinking about the equilibrium unemployment rate assumes that in the long run NAIRU … even in simple log-linear wage-price models. Furthermore we provide a survey on a number of “hysteresis-mechanisms” which …