Persistent unemployment after recessions and the policies required to bring it down are the subject of an ongoing … unemployment, requiring the implementation of structural policy reforms. The alternative view is that the slow recovery of the … economy is due to cyclic reasons coming from lack of demand which prevents unemployment from falling quickly. Knowing whether …

classes of questions are investigated. First, what is the impact of exogenously given labor taxes and unemployment benefits on … monopolistically competitive firms and through them on unemployment, inflation and welfare? A related question is, how does the level … maximize the expected real income of union members over states of employment and of unemployment, a central bank that strives …

at the ZLB. Outside the ZLB, it has adverse effects, meaning that unemployment insurance benefits should be adjusted …In this paper we investigate the impact of the recent US unemployment benefits extension on the labor market dynamic … experiments suggest that, in contrast to the existing literature that ignores the liquidity trap situation, unemployment benefits …

optimal if the government can choose the level of unemployment benefits as well as the degree of central bank conservatism. …