hybrid specification that includes both lagged and future inflation and then by examining whether the estimated coefficient … on future inflation is significantly larger than the one on lagged inflation. This article presents the evidence that … is irrelevant and expected future inflation is the major determinant of inflation — arise if the hybrid specification is …

inflation. The model, named the rational-arrangements Phillips curve, identifies a central role for catch-up to price inflation … that has already occurred and a more latent role for rational expectations of future inflation. The reinterpreted Phillips …-neutrality, is consistent with inflation persistence in the aftermath of monetary shocks, informs monetary policymaking in hyper …

inflation. Bill, Klenow and Malin (2012) show that, while these shocks are needed to reduce the excessive inflation persistence … generated by the models, they give rise to unrealistically volatile reset price inflation. This paper shows that introducing … the data on reset inflation …

deviation of unemployment from the natural rate and inflation. Both propositions have been challenged. Blanchard reviews the …, the natural rate of unemployment is independent of monetary policy. Second, there is no long-run tradeoff between the …

Unemployment occurs because workers and firms have control over wages and prices. The exercise of market power over … interventions on unemployment and growth. Reforms that result in lower labor costs raise employment, reduce unemployment, and boost … unemployment is larger than one would expect if the pro-competitive effect of the reforms were ignored. These reforms, thus, are …

Using an efficiency-wage model, we examine the relationship between indeterminacy and unemployment insurance. It is … shown that the less unemployment insurance is, the more likely equilibrium is to be indeterminate. Equilibrium can be …

In this paper, I show that the decline in household consumption during unemployment spells depends on both liquid and … illiquid asset positions. I also provide evidence that unemployment spells predict the withdrawal of illiquid assets …, particularly when households have few liquid assets. Motivated by these findings, I embed endogenous unemployment risk in a two …