response to changes in the unemployment rate. This paper offers a theoretical justification for such a nonlinear policy rule …

This Economic Letter examines recent evidence concerning the connection between unemployment and inflation. We argue … that, in a deep economic downturn such as the current one, inflation and unemployment do tend to move together in a manner … consistent with the Phillips curve. But, outside of such severe recessions, fluctuations in the inflation and unemployment rates …

. The authors also analyze the impact of inflation and unemployment on these subjective measures and find that both … contrast with other studies, however, they do not find that the effect of unemployment is significantly different from that of …

the late 1990s - despite low unemployment - chiefly because an unusually high markup allowed firms to increase wages … without raising prices. As the markup returns to normal, the recent unusually favorable unemployment -inflation trade-off can …

unemployment." …

Hysteresis is central to long-run unemployment movements in many countries. This essay addresses two broad issues. The … NAIRU, and hence the long run behavior of unemployment, is independent of aggregate demand? The second broad issue is the … nature of hysteresis. Through what mechanisms do short-run unemployment movements influence the NAIRU? What determines the …