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 …

This paper develops a New Keynesian model with search frictions in which generated frictional unemployment is … consistent with the time series of involuntary unemployment collected by the U.S. Bureau of Labor Statistics. Thus, it can shed … light on the relevant impact of labor market frictions and policy interventions on the observed unemployment about which …

and matching unemployment. We show that trend growth in itself does not generate a trade-off for the monetary authority …