employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

This paper investigates the importance of labor market institutions for inflation and unemployment dynamics. Using the … and their interaction is crucial for the dynamics of inflation and unemployment. We estimate a panel VAR with … deterministically varying coefficients and find that there is a profound difference in the responses of unemployment and inflation to …

This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone … theory. Real wage rigidities do not seem to play much of a role. This result is in line with our employed labor market model … output volatility, they do not seem to have much of an effect on inflation volatility. Our estimations indicate that the …

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to …

-specific labour imply a sufficient degree of real rigidity, and so can reproduce inflation dynamics well. However, they imply too … little real rigidity and, so, too volatile inflation, owing to strong responses of marginal wages and hours per employee … the responses of wages, inflation and employment …

cycles. Economic Theory, 12(3):583-597]. The aim of this article is to show that financing constraints can substantially …