A high natural rate of unemployment has been identified by the time inconsistency literature as the root cause of an inflation bias. Thus, a reduction of equilibrium unemployment and of the inflation bias requires fundamental reforms of labour market institutions. However, there has been little...

High equilibrium unemployment and the inflation bias in some EU countries require fundamental reforms of labour-market institutions. Impacts of different monetary regimes inside and outside EMU on the incentives for labour- market reforms are examined in a Barro- Gordon framework from the...

Zusammenfassung Die Zeitinkonsistenzliteratur sieht in einer hohen strukturellen Arbeitslosenrate die Hauptursache für eine hohe Inflationsrate. Eine Verringerung der gleichgewichtigen Arbeitslosigkeit und der inflationären Verzerrung erfordern aber fundamentale Reformen der...