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 …

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 …

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 …

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 …

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 …

which induce smooth inflation also dampen the adjustment of wages in response to shocks. In the search and matching … Phillips curve is that inflation is not only driven by an output gap but also by an employment gap - a feature usually …

-regional correlation of unemployment and inflation increases by up to 52% and 27%, respectively, compared to the decentralised setting. The … supranational unemployment insurance scheme. The model is calibrated to the euro area's core and periphery and features a rich …

Can the aging process affect inflation? The prolonged decline of fertility and mortality rates induces a persistent … downward pressure on the natural interest rate. If this development is not internalized by the monetary policy rule, inflation … inflation found in the data for the euro area. In this model, continuing to follow the same rule makes inflation to be on a …

This paper documents, for the first time in a systematic manner, the link between labor cost and price inflation in the … and price inflation in the four major economies of the euro area and across the three main sectors. The dynamic …. Our results show that it is more likely that labor costs are passed on to price inflation with demand shocks than with …