employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

This paper reviews recent approaches to modeling the labour market and assesses their implications for inflation … volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most …

This paper reviews recent approaches to modeling the labour market and assesses their implications for inflation … volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most …

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to … paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a …

with a SVAR model by inspecting how unemployment responds to the state of the economy. We show that deviations from Okun …

alternative monetary rules on unemployment dynamics in the euro area and the US. We use the inflation forecasts of 8 competing …This paper explores the role that inflation forecasts play in the uncertainty surrounding the estimated effects of … relative to the different inflation models under two rules. The results suggest that model uncertainty can be a serious issue …

This paper examines the usefulness of the Okun relationship as a “rule of thumb” for predicting changes in unemployment … differential reaction of unemployment to changes in the various expenditure components of GDP - significantly enhances the capacity … of the Okun relationship (in comparison to the aggregate “rule of thumb”) for predicting movements in unemployment. The …

deviate from the strict inflation targeting since the policy maker faces a typical unemployment/inflation trade-off. In this … matches. Hence optimal monetary policy features unemployment targeting along with inflation targeting … context and unlike a standard New Keynesian model stabilizing inflation is not sufficient to stabilize the marginal cost …