The standard search model of unemployment predicts, under realistic assumptions about household preferences, that … disembodied technological progress leads to higher steady-state unemployment. This prediction is at odds with the 1970s experience … of slow productivity growth and high unemployment in industrial countries. We show that introducing nominal price …

and matching unemployment. We show that trend growth in itself does not generate a trade-off for the monetary authority …

The standard search model of unemployment predicts, under plausible assumptions about household preferences, that … disembodied technological progress leads to higher unemployment. This prediction is at odds with the experience of industrialized … model's prediction. In the presence of nominal price rigidity faster growth is shown to lead to lower unemployment if the …

productivity growth and high unemplyoment. Subsequent research has shown that the standard model of unemployment actually gives …, Tesfaselassie and Wolters examine the effect of growth on unemployment in the presence of nominal price rigidity. The authors … demonstrate that the effect of growth on unemployment may be positive or negative. Faster growth leads to lower unemployment if …