In this paper we study 2-state Markov switching VAR models of monthly unemployment and inflation for three countries … variance in unemployment. In the U.S. case we find that the variance of unemployment is lower in the low inflation regime than … in hte high inflation regime, while the Swedish and the U.K. cases suggest that unemployment variability is higher in the …

This paper builds up a simple New Keynesian model and revisits the relationship between unemployment and in ation in … beyond the tradeoff between the first moments of unemployment and infl ation provided by the short-run Phillips curve. Higher … volatility in ifln ation raises unemployment at low-frequency. Increased volatility in infl ation makes nominal wages more …

dynamics of inflation implied by macroeconomic data, the model needs to assume an average duration of price contracts which is …

I analyze the effect of search frictions on inflation dynamics, in a New Keynesian model where firms make both pricing … empirical performance along a number of dimensions. First, inflation becomes more persistent. Second, output responses to … monetary shocks become larger and more persistent. Finally, unemployment becomes more volatile …

This paper revisits the relationship between unemployment and inflation in the long-run through the lens of a New … relationship goes beyond the tradeoff between the first moments of unemployment and inflation provided by the short-run Phillips … curve. Higher volatility in inflation raises unemployment at the low-frequency. Increased volatility in inflation makes …

This note revisits the relationship between unemployment and inflation in the long-run. Using data on OECD countries to … capture low-frequency dynamics, panel regressions confirm the negative relationship between unemployment and inflation as in … the short-run Phillips curve. Yet, inflation volatility is associated positively with unemployment. Empirical evidence is …