cointegrated processes. Results on quarterly data relative to the period 1981 - 2006 show that: (i) the euro area inflation rate …

?2006 show that: (i) the euro area inflation rate and the wage share are cointegrated; (ii) the cointegrated version of the …

deviation of unemployment from the natural rate and inflation. Both propositions have been challenged. Blanchard reviews the …, the natural rate of unemployment is independent of monetary policy. Second, there is no long-run tradeoff between the …

unemployment rates, an increase in demand reduces unemployment without creating strong inflationary pressures. Meanwhile, supply … shocks have a muted effect. At sufficiently low unemployment, there is a labor shortage, so that the economy is at full …

for permanent liquidity traps with positive inflation and unemployment. Last, we combine directed search with costly price … inflation has been very stable. Motivated by this observation, we develop a business-cycle model in which fluctuations in demand … and supply lead to fluctuations in slack but not in inflation. Our model extends the money-in-the-utility-function model …

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 …

-pissarides economy with firm-specific productivity shocks. Our main theoretical results are twofold. First, unemployment is lower under … firm-level bargaining second, introducing efficient opting-out of sector-level agreements suffices to bring unemployment … unemployment rate is about 5 percentage points lower under firm-level bargaining or efficient opting out than under sector …