We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications … for the unemployment-inflation tradeoff and for the conduct of monetary policy.lt;brgt;lt;brgt;We proceed in two steps. We … effect on unemployment in the constrained efficient allocation. We then focus on the implications of alternative real wage …

unemployment and vacancies. Following suggestions by Robert Hall and Robert Shimer, this paper shows that a relatively standard … simulate moments of an artificial economy with and without sticky wages and we document the dependence of unemployment and …

rate creates a negative pecuniary externality. This peg-induced externality is shown to cause unemployment, overborrowing … unemployment rate by 10 percentage points, reduce average external debt by more than 50 percent, and increase welfare by over 7 …

unemployment benefits …

peak at 12 months. 5) The probability of a wage change is positively correlated with the unemployment rate and with the …

rigidity makes the economy prone to involuntary unemployment during external crises. This paper presents a graphical analysis …

the unskilled. By contrast, in Europe it is undoubtedly the rise and persistence of unemployment. Technology has been … European unemployment. This paper seeks to provide a unified account of these major factor market developments. It models the … impact of technical change on relative wages and unemployment in a world in which one country has flexible and the other …

The standard theory of equilibrium unemployment, the Mortensen-Pissarides search and matching model, cannot explain the … magnitude of the business cycle fluctuations in two of its central elements, unemployment and vacancies. Modifying the model to … make the present value of wages unresponsive to current labor market conditions amplifies fluctuations in unemployment and …

particular, it provides a natural interpretation for the dynamic inflation--unemployment relation found in the data …