The dynamic general equilibrium model with hiring costs presented in this paper delivers involuntary unemployment in … the steady state and involuntary fluctuations in unemployment. After calibrating the model, through simulations we are …

and lagged relationships between the rates of inflation, unemployment, and change in labour force. For France, several … study has validated the reliability and accuracy of the linear and lagged relationships between inflation, unemployment, and … relationships were estimated eight years ago. The change rate of labour force was used as a driving force of inflation and …

, instead, favors unemployment-centric policy. One- and two-agent alternatives can show unanimous disapproval of inflation … stabilization policy is pronounced. The wealth rich or retired tend to favor inflation targeting. The wealth-poor working class …-centric policy, instead. We highlight how the political support for inflation-centric policy depends on wage setting, the tax system …

an estimated DSGE model. It finds that the disconnect is due primarily to the muted reaction of inflation to cost … inflation stabilization also appears to have played some role by reducing the impact of demand shocks on the real economy. The …

find that the effect of unemployment on inflation, for given expected inflation, decreased until the early 1990s but has … below the pre-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than … anticipated, suggesting a breakdown of the relation between inflation and activity. To examine the first, we look at 122 …

unemployment on inflation,for given expected inflation, decreased until the early 1990s, but has remained roughly stable since then …-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a … breakdown of the relation between inflation and activity. To examine the first, we look at 122 recessions over the past 50 years …

and Galí (2006, 2008) New-Keynesian model of inflation and unemployment, where labor market frictions due to costs of … policy rules based on current period inflation and unemployment our results are similar to those of Bullard and Mitra (2002 … market institutions we find that responding too much to expected inflation and too little to expected unemployment may very …

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 …

inflation and the stabilization of the welfare relevant output gap after a productivity shock hits the economy. When the … standard model is enhanced by real wage rigidities or labor turnover costs, an endogenous short-run inflation-output tradeoff … rigidities. Second, labor turnover costs are the dominant source for the inflation-output tradeoff when both rigidities are …