and Galí (2006, 2008) New-Keynesian model of inflation and unemployment, where labor market frictions due to costs of … policy rules based on current period inflation and unemployment our results are similar to those of Bullard and Mitra (2002 … explaining unemployment instability. Under lagged data based rules the area where monetary policy delivers both determinacy and E …

Recently, the unemployment gap in the euro area has fallen markedly. However, wages increased less than predicted by … alternative measures for labor market slack, namely the unemployment gap and the European Commission's labor shortage indicator …

in their unemployment rate and not a decline in labour force participation rate. Policymakers should take account of …

facing exogenous differences in the job finding and separation rates. We use our setting to study the racial unemployment gap … two groups both in the level and volatility of unemployment. We show that the racial unemployment gap is counter … unemployment is above average the gap increases by 0.6pp more than when aggregate unemployment is below average. In terms of policy …