business cycle will induce a higher natural rate of unemployment …

long run Phillips curve recorded -0.75 in Sweden and -0.23 in the United States. While the average inflation rate in the … United States was very close to its targeted level, the average inflation rate in Sweden was 0.6 per- centage points below … its targeted level over the sample period. The deviation of inflation rate from its targeted level in Sweden resulted in …

As inflation rates in the United States decline, analysts are asking if there are economic reasons to hold the rates at … levels above zero. Previous studies of whether inflation "greases the wheels" of the labor market ignore inflation …-setting that allows the benefits of inflation (downward wage flexibility) to be separated from disruptive uncertainty about …

In this paper we study 2-state Markov switching VAR models of monthly unemployment and inflation for three countries … variance in unemployment. In the U.S. case we find that the variance of unemployment is lower in the low inflation regime than … in hte high inflation regime, while the Swedish and the U.K. cases suggest that unemployment variability is higher in the …

sensitivity of inflation to unemployment rate changes. Improvement in fit from just including the online share is tiny—so far …During the recovery from the Great Recession, inflation did not reach the central bank's 2 percent objective as quickly … contestable and damped retail inflation. This hypothesis is tested using data on the online share of retail sales, which are …

' PC (relating the level of the inflation rate, not the change in this rate, to the rate of unemployment); and the …

, inflation and unemployment, we detect a wrong sign in the response of inflation to contractionary monetary policy shocks … significant unemployment inflation trade-off emerges. These conclusions are confirmed by using industrial production instead of … 1999-2019, when the Federal Funds Rate and the Euro-Dollar exchange rate are added to the VAR model inflation shows …

unemployment. Our model succeeds in replicating the empirical fact of a downward sloping Phillips curve for low inflation rates and … an upward sloping curve for high inflation rates. The reason is that low inflation rates make saving, as opposed to … consumption, more attractive. Less consumption is associated with less output and therefore higher unemployment. To the contrary …

Central bankers are raising interest rates on the assumption that wage-push inflation may lead to stagflation. This is … not the case. Although unemployment is low, the labor market is not 'tight'. On the contrary, we show that what matters …