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 …

. Empirical results concerning Europe and selected other industrial countries reveal that the cyclical link between unemployment …