Kolsrud, Dag Olav; Nymoen, Ragnar - In: Journal of Economic Studies 42 (2015) 2, pp. 186-206
Purpose – A standard model of equilibrium unemployment consists of static equations for real-wage ambitions (wage curve) and real-wage scope (price curve), which jointly determine the NAIRU. The heuristics of the model states that unless the rate of unemployment approaches the NAIRU from any...