It has been noted that the search and matching model cannot account for the observed unemployment fluctuations. Gertler …

Empirically, unemployment is highly volatile while inflation displays inertia, even though marginal cost is pro … unemployment in the Great Recession. Moreover, inflation inertia is made consistent with pro-cyclical marginal cost since the …

It has been noted that the search and matching model cannot account for the observed unemployment fluctuations. Gertler …

‐sector economy and show that if agents only consider labor demand effects low real wages and low unemployment are the consequences … and unemployment result. If all general equilibrium effects are perceived simultaneously, we once again obtain a situation … with low wages and unemployment. The results may explain why unemployment is high in some European countries …

age unemployment. Public transfers to early retirees may produce efficiency gains even if they have a negative effect on …