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

expansionary demand shock and to an inflationary supply shock under the Taylor rule, asymmetric unemployment targeting, and average … inflation targeting. For each rule we distinguish between cases with zero weight on the unemployment gap and a negative response … to rising unemployment. Across all rules, responding to unemployment leads to lower losses of employment and higher …

labor market and skill obsolescence from long-term unemployment. The model can account for key features of the Great … aggregate demand raises unemployment and the training costs associated with skill obsolescence. Lower employment hinders …

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 …

, inflation and unemployment, we detect a wrong sign in the response of inflation to contractionary monetary policy shocks … significant unemployment inflation trade-off emerges. These conclusions are confirmed by using industrial production instead of … the unemployment rate in the VAR model. …

What are the long-run aggregate effects of monetary shocks displaying throughthe credit channel of monetary policy? We … credit and innovation. Then, we develop a DSGE model featuring endogenous growth, in which credit frictions constrain the …