guarantee the equilibrium in the labor market. The positive long-run co-movement between unemployment and infl ation volatility …This paper builds up a simple New Keynesian model and revisits the relationship between unemployment and in ation in … the long-run. It finds that when the labor market is affected by downward nominal wage rigidity, this relationship goes …

unemployment that is in line with this empirical regularity and the findings for the other emerging markets and regional peers. We … European debt crisis. When investigating whether various expenditure components of GDP may cause different unemployment … improve forecasting of unemployment. …