-the-job search makes such wage competition less likely, reducing expected labor costs and lowering inflation. This model explains why … inflation has remained subdued over the last decade, which is a conundrum for general equilibrium models and Phillips curves …

This paper shows that Livingston Survey measures of unemployment uncertainty are positively correlated with inflation …, that inflation Granger Causes unemployment uncertainty and that shocks to inflation uncertainty or unemployment uncertainty … have similar effects on real GDP growth. This suggests higher unemployment uncertainty is a cost of higher inflation that …

The low rate of inflation observed in the U.S. over the entire past decade is hard to reconcile with traditional … the job explains this missing inflation. We derive this novel concept of slack from a model in which a drop in the on …

control for low-frequency movements in inflation, unemployment, and growth that are pervasive in the post-WWII period. We show … that cyclical fluctuations of inflation are related to cyclical movements in real activity and unemployment, in line with …We study the relation between inflation and real activity over the business cycle. We employ a Trend-Cycle VAR model to …

In this paper, we assess several methods that have been used to measure the Canadian trend unemployment rate (TUR). We … extent to which methods provide explanations for changes in trend unemployment; (ii) whether revisions to unemployment gap … (UGAP, the difference between the actual unemployment rate and TUR) estimates are well behaved; (iii) if UGAPs provide …

during and following the recent Great Recession, and that models in which inflation depends on economic slack cannot explain … the recent muted behavior of inflation, given the sharp drop in output that occurred in 2008-09. In this paper, we use a … protracted decline in inflation. The model does so even though inflation remains very dependent on the evolution of both economic …

during and following the recent Great Recession, and that models in which inflation depends on economic slack cannot explain … the recent muted behavior of inflation, given the sharp drop in output that occurred in 2008-09. In this paper, we use a … protracted decline in inflation. The model does so even though inflation remains very dependent on the evolution of both economic …

This article shows how the recovery of inflation in 2009-10 occurred precisely at the only time (since 1985) the models … would predict disinflation, i.e., inflation went up when the models said it should go down …

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 …

find a positive and significant relationship between sales and unemployment and perform a time series principal component …