We show in a union-bargaining model that a decrease in the unemployment benefit level increases not only equilibrium …-term wage contracts lead to higher expected real wages and hence higher expected unemployment than short-term contracts …

important source of uncertainty is the relationship between inflation and unemployment. This paper studies the optimal monetary … policy in the presence of uncertainty about the natural unemployment rate, the short-run inflation-unemployment tradeoff and …

economic outcomes. The question is whether higher transparency comes at some cost, i.e. higher unemployment or higher … unemployment variability. Firstly, the article shows in a theoretical model that opaqueness regarding the central bank …’s preferences does not necessarily lead to lower unemployment. Secondly, the paper analyses the main theoretical results of other …

The non-accelerating inflation rate of unemployment (NAIRU) is not directly observable and the presence of informal … informality seems to predict inflationary pressures more accurately when the unemployment gap is close to zero. …