After an expansionary monetary policy shock employment increases and unemployment falls. In standard New Keynesian … models the fall in aggregate unemployment does not affect employed workers at all. However, Lüchinger, Meier and Stutzer … (2010) found that the risk of unemployment negatively affects utility of employed workers: An increases in aggregate …

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 …

historical negative correlation between the unemployment rate and the employer-to-employer (EE) transition rate up to the Great … rate increased commensurately with the decline in unemployment. We then decompose the channels through which a change in EE …

unemployment dynamics. The optimal monetary policy prescribes a strong positive response to EE fluctuations, implying that central … banks should distinguish between recovery episodes with similar unemployment but different EE dynamics. …

unemployment, in a way that suggests that a baseless fear of full employment is a principal force behind monetary policy. Tests of … the Federal Reserve largely ceased reacting to inflation or high unemployment, but continued to react when unemployment … for the effects of inflation and unemployment. -- Personal Income ; Wage Level ; Wage Differentials ; Price Level …

unemployment, in a way that suggests that a baseless fear of full employment is a principal force behind monetary policy. Tests of … the Federal Reserve largely ceased reacting to inflation or high unemployment, but continued to react when unemployment … controlling for the effects of inflation and unemployment …