employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most … promising candidates. -- Inflation Dynamics ; Labour Market ; Business Cycle ; Real Rigidities …

This paper reviews recent approaches to modelling the labour market, and assesses their implications for inflation … data and, so, too volatile inflation. Models with wage stickiness and right-to-manage bargaining, or with firm …