We study the steady state with involuntary unemployment and fiscal policy to realize full-employment in a situation … with technical progress. Under involuntary unemployment the nominal wage rate may decline. Then, the prices of the goods …

Persistent unemployment after recessions and the policies required to bring it down are the subject of an ongoing … unemployment, requiring the implementation of structural policy reforms. The alternative view is that the slow recovery of the … economy is due to cyclic reasons coming from lack of demand which prevents unemployment from falling quickly. Knowing whether …

and matching unemployment. We show that trend growth in itself does not generate a trade-off for the monetary authority …

create a vicious circle of depreciation and rising domestic prices, and about the roles played by the natural unemployment …