recovered but unemployment lingered). This paper presents a model that captures these three facts. The key elements of the model … confidence shock. Lack-of-confidence shocks play a central role in generating jobless recoveries, for fundamental shocks, such as …

persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation … cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions … employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to …

severe and prolonged macroeconomic shock affects wage rigidity and unemployment. Our second survey was conducted in 1998 …, when the unemployment rate was much higher, and the inflation rate much lower, than when we conducted the first survey in … 1991. We find no evidence that the increase in unemployment has softened the mechanisms generating wage rigidity. On the …

the hypothesis that a rigid wage structure has been responsible for rising low-skilled unemployment, I propose a …

shock and find that they were rigid, which can explain the relative unemployment increase for this group. Finally, I test …Switzerland, traditionally a "zero unemployment" economy, has seen an unprecedented rise in joblessness in the 1990s … although unemployment fell again to a rather low level after 1997. This paper tests whether Switzerland experienced a negative …

the hypothesis that a rigid wage structure has been responsible for rising low-skilled unemployment, I propose a …

the hypothesis that a rigid wage structure has been responsible for rising low-skilled unemployment, I propose a …