; equilibrium unemployment ; inflation target ; Phillips curve ; Lucas critique ; Germany …

supply and observed unemployment rate. Our approach to labour market in the New Keynesian DSGE model follows papers of Galí … the labour supply preference shock) and use the results to explain the evolution of unemployment in the period of 1999–2011 …

and unemployment rates for a set of 17 advanced economies starting in 1870. I show that the wage Phillips curve has always …. In such an environment, wages and prices are adjusted by firms less often and thus, the relationship between unemployment …

Skill erosion during unemployment was of particular concern as unemployment duration increased in the Great Recession … unemployment pool's skill composition, and hence the output produced by other firms' new hires. As a consequence, job creation is …

What are the tradeoffs that the public is willing to accept between inflation and unemployment? We find that people … dislike unemployment more than inflation. This is true for both Europe and Latin America. For the latter, the aversion to … unemployment relative to inflation is much greater. Moreover, in both regions, the poor's distaste for unemployment relative to …

This paper analyzes the effects of nominal wage rigidity on inflation persistence and unemployment using a dynamic … open economy, allowing to simultaneously introduce nominal wage rigidity and unemployment in the labor market. Our main … provides estimates of the nominal wage rigidity implications on unemployment. Indeed, in a context of wage rigidity, a …

an unemployment cost equivalent to 0.8 percentage points over the sample period where the average unemployment rate …

, unemployment is systematically decreasing, the financial sector is more eager to lend, and its clients - to borrow. Rapidly growing …