This paper analyses the Nairu in the Euro Area and the influence that hysteresis had on its development. Using the … is applied here using explicit exogenous variables. In order to test for hysteresis, the dependence of the Nairu on … Kalman-filter technique we find that the Nairu has varied considerably since the early seventies. The Kalman-filter technique …

so that our identification is not affected by the Faust andLeeper (1997) critique. We find widespread hysteresis: demand …-teractions with structural shocks and other institutions as crucial determinantsof hysteresis. …

for 29 countries from the OECD. We find strong evidence of hysteresis: an innovation in u causes u* to change in the same …

This paper investigates the hypothesis that the extent to which hysteresis occurs in the aftermath of recessions … depends on monetary policy reactions. The degree of hysteresis is explained econometrically by the extent of monetary easing …

unemployment rate is independent of aggregate demand shocks. The hysteresis hypothesis, in contrast, states that the long run … unemployment rate can be affected by aggregate demand shocks. While policy makers have warned of the risk of hysteresis since the … 2008 financial crash, hysteresis effects are not incorporated into the macroeconometric models used by policy making …

This note gives a brief survey of main theoretical and empirical issues with respect to the NAIRU concept. According to … modern labour market literature NAIRU is defined as the rate of unemployment at which inflation stabilizes in the absence of … any wage-price surprises. Conventional thinking about the equilibrium unemployment rate assumes that in the long run NAIRU …

from the natural rate of unemployment framework in that it postulates a short-run NAIRU influenced by 'hysteresis'. It is …This paper assesses the Layard et al. (1991) NAIRU framework for explaining unemployment. Their approach is distinct … pointed out that this is not hysteresis in the meaning employed elsewhere, so an outline of what hysteresis actually implies …