Two key facts about European unemployment must be explained: the rise in unemployment since the 1960s, and the … heterogeneity of individual country experiences. While adverse shocks can potentially explain much of the rise in unemployment … institutions pre-date the rise in unemployment. Based on a panel of institutions and shocks for 20 OECD nations since 1960, we find …

relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes …, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of … inflation decreases: this implies a long-run trade-off also between the volatility of unemployment and that of wage inflation …

inflation expectations. We develop this measure using assumptions common in economic analysis of open economies. Using quarterly …

number of developing countries now have domestic inflation targets administered by independent and transparent central banks … monetary policy in these countries does not have any obvious international cost. Inflation targeters have lower exchange rate … volatility and less frequent quot;sudden stopsquot; of capital flows than similar countries that do not target inflation …

In countries where wages are primarily set by collective bargaining, the effects on unemployment of changes in the … relations. In this paper, we examine the role this quality of labor relations has played in the evolution of unemployment across … relations have experienced higher unemployment. This conclusion remains even after controlling for labor institutions …

advantage of the workers' induces higher unemployment in equilibrium. The upshot is a long run tradeoff between inflation and … unemployment for low levels of inflation. The prediction that low inflation involves higher unemployment in Europe but not in the … try to prevent a cut in nominal wages. If inflation is so low that some nominal wages have to be cut, the strategic …

inflation and unemployment. Under some assumptions, that relation takes a form similar to that found in empirical applications … structural wage equation derived here is shown to account reasonably well for the comovement of wage inflation and the … unemployment rate in the U.S. economy, even under the strong assumption of a constant natural rate of unemployment …

set of contingent claims conditional on this risk.We use the model to evaluate a tax-financed unemployment insurance … stochastic ones---generate rather limited unemployment effects, unless workers are close to indifferent between working and not …

than does consumption. At the same time, the model is consistent with a lack of secular movements in hours and unemployment …