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-to-specific testing strategy reveals a recursive structure where only the unemployment rate and long-term interest rates are directly …
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, 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. …
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actual unemployment and long-term unemployment is estimated and found to be significant for the Euro Area and Germany …
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Aside from employment protection laws, which have been converging, other labor market institutions in new and old EU member states, such as wage bargaining coordination and labor union density, still differ considerably. These labor market institutions also differ among the new EU member states,...
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