despite substantial volatility of the unemployment rate, and in particular the common tendency of PC inflation equations to … five years but rather in the mid-1970s, when the predicted negative relation between inflation and unemployment turned out … to be utterly wrong. Instead inflation exhibited a strong positive correlation with unemployment. Failure bred success …

The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future … shocks do not systematically lead to more persistent unemployment than monetary policy shocks, so these cannot explain the … rising persistence of unemployment. Second, monetary and fiscal policies can account for only part of the evolving …

, and price and wage rigidities. Regulation affects producer entry costs, employment protection, and unemployment benefits …

What accounts for inflation after 2008? We use the prominent pre-crisis Smets-Wouters (2007) model to address this … question. We find that due to price markup shocks alone inflation would have been 1% higher than observed and 0.5% higher that … responsible for the slow recovery of employment, though not for the initial drop. Monetary policy shocks predict an inflation rate …

interest on reserves. While their effects on output and inflation are small, these policies require major adjustments in the …

demand shocks if monetary policy does not respond strongly to inflation. More flexible prices often reduce welfare, even …

recovered but unemployment lingered). This paper presents a model that captures these three facts. The key elements of the model …

shortening the duration of the crisis and a binding zero bound. Inflation should be front loaded. Fiscal-policy multipliers can …

inflation target. The results indicate that the target rose from 1 1/4 percent in 1959 to over 8 percent in the mid-to-late 1970 … supply-side shocks into more persistent movements in inflation itself, although considerable uncertainty remains about the … true source of shifts in the inflation target. …