is due to the long-run non-neutrality of money and the hysteresis effects in TFP through which ELB episodes generate …

We introduce skill decay during unemployment into Blanchard and Gali's (2008) New-Keynesian model with hiring frictions … and real-wage rigidity. Plausible values of quarterly skill decay and real-wage rigidity turn the long-run marginal cost-unemployment … relationship positive in a "European" labour market with little hiring but not in a fluid "American" one. If the marginal cost-unemployment …

sluggish. Job creation and job destruction are negatively correlated. And the volatility of unemployment is much larger than in … the standard search and matching model. -- monetary persistence ; labor market ; hiring and firing costs …

This paper introduces unemployment hysteresis into a tractable New Keynesian three equation model using an insider …-outsider labour market. We demonstrate that strict inflation targeting can lead to a unit root in the unemployment rate, but dual …

is due to the long-run non-neutrality of money and the hysteresis effects in TFP through which ELB episodes generate …

sluggish. Job creation and job destruction are negatively correlated. And the volatility of unemployment is much larger than in …

long-run impact on the productive capacity of the economy through hysteresis effects. These demand shocks are found to be …

hysteresis (persistent unemployment) in labor markets. Under the New Keynesian framework two major lines of thought explain … unemployment series provide us preliminary evidence due to possible presence of hysteresis in both economies. Following, separate … unemployment patterns: Non Accelerating Inflation Rate of Unemploymet - NAIRU (or the natural rate of unemployment) and the …