Recent time series evidence favouring a supply-side interpretation of long-run unemployment in the UK is based on the finding of cointegration between unemployment and wage pressure variables. We show that this is necessary but not sufficient. The key assumptions in recent work, that a single...

We address the usefulness of both fully optimal and optimal rules in a timeless perspective. We prove the existence of a determinate representation, which complements the Dennis (2010) observation that the optimal rule may be written in multiple ways, and note that it cannot therefore be...