What are the effects of financial market imperfections on unemployment and vacancies? Since standard DSGE models do not … typically model unemployment, they abstract from this issue. In this paper I augment a standard monetary DSGE model with … volatile unemployment and vacancies, and a relatively rigid real wage. Further, I find that the financial accelerator mechanism …

unemployment, which we calibrate on EU15 and US data. Labor market imperfections are found to significantly increase the volume of … to investigate how demographic asymmetries may have contributed to unemployment and welfare changes in the recent past … is mobile. -- demographics ; capital flows ; overlapping generations ; general equilibrium ; unemployment …