" (NAIRU) for Germany. There are quite a few obstacles to perceiving the NAIRU as an understandable and easy-to-use analytical … occurrence of shocks and hysteresis effects, the (mis-)measurement of important variables such as in ation expectations …, cointegration issues, and a time variability of the NAIRU and its confidence intervals. Despite many serious caveats a new attempt …

This paper investigates the hypothesis that the extent to which hysteresis occurs in the aftermath of recessions … depends on monetary policy reactions. The degree of hysteresis is explained econometrically by the extent of monetary easing …

unemployment rate is independent of aggregate demand shocks. The hysteresis hypothesis, in contrast, states that the long run … unemployment rate can be affected by aggregate demand shocks. While policy makers have warned of the risk of hysteresis since the … 2008 financial crash, hysteresis effects are not incorporated into the macroeconometric models used by policy making …

This note gives a brief survey of main theoretical and empirical issues with respect to the NAIRU concept. According to … modern labour market literature NAIRU is defined as the rate of unemployment at which inflation stabilizes in the absence of … any wage-price surprises. Conventional thinking about the equilibrium unemployment rate assumes that in the long run NAIRU …

from the natural rate of unemployment framework in that it postulates a short-run NAIRU influenced by 'hysteresis'. It is …This paper assesses the Layard et al. (1991) NAIRU framework for explaining unemployment. Their approach is distinct … pointed out that this is not hysteresis in the meaning employed elsewhere, so an outline of what hysteresis actually implies …

we critically discuss explanations based on the time-varying NAIRU and put against them explanations based on aggregate … demand and hysteresis. In the conclusion, some consequences for economic policy are indicated. …