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between monetary policy, employment, and unemployment. According to the obtained estimates monetary policy shocks invoked … lagged, hump‑shaped reactions of output, employment and unemployment in each of the analysed countries. …
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responsible for the slow recovery of employment, though not for the initial drop. Monetary policy shocks predict an inflation rate … 0.5% below average. Government expenditure innovations do not contribute much either to inflation or to employment …
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In a new Keynesian model with random search in the labor market, endogenous selection among heterogeneous workers amplifies fluctuations in unemployment and results in excess unemployment volatility relative to the efficient allocation. Recessions disproportionately affect lowproductivity...
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