We propose that the natural rate of unemployment has an active role in the business cycle, in contrast to the … Phillips-curve framework of low - often extremely low - response of inflation to unemployment could be the result of fairly … most Phillips-curve studies, that conclude that inflation has little relation to unemployment. We suggest that the flat …

This paper discusses various concepts of unemployment rate benchmarks that are frequently used by policymakers for … particular, we propose two broad categories of unemployment rate benchmarks: (1) a longer-run unemployment rate expected to … prevail after adjusting to business cycle shocks and (2) a stable-price unemployment rate tied to inflationary pressures. We …

labor market and skill obsolescence from long-term unemployment. The model can account for key features of the Great … Recession: a decline in productivity growth, the relative stability of inflation despite a pronounced fall in output (the … aggregate demand raises unemployment and the training costs associated with skill obsolescence. Lower employment hinders …

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

paper is threefold: first, we show that the model provides a good fit for employment and unemployment volatility, as well as … volatility of employment and unemployment. Finally, we show the role of search costs in shaping those results. -- matching …

below the pre-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than … find that the effect of unemployment on inflation, for given expected inflation, decreased until the early 1990s but has …

We explore two issues triggered by the crisis. First, in most advanced countries, output remains far below the pre-recession … unemployment on inflation,for given expected inflation, decreased until the early 1990s, but has remained roughly stable since then …

This paper investigates the importance of labor market institutions for inflation and unemployment dynamics. Using the … Unemployment Rigidities (UR) and those that cause Real Wage Rigidities (RWR). The two types of institutions have opposite effects … and their interaction is crucial for the dynamics of inflation and unemployment. We estimate a panel VAR with …