This paper relates the size of the cyclical inflation differentials, currently observed for euro area countries, to the … cyclical inflation differentials. The proposed mechanism is a supply side one in which differences in labor market institutions …

employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

This paper investigates the importance of labor market institutions for inflation and unemployment dynamics. Using the … and their interaction is crucial for the dynamics of inflation and unemployment. We estimate a panel VAR with … deterministically varying coefficients and find that there is a profound difference in the responses of unemployment and inflation to …

This paper reviews recent approaches to modeling the labour market and assesses their implications for inflation … volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most …

This paper reviews recent approaches to modeling the labour market and assesses their implications for inflation … volatile inflation. Models with wage stickiness and right-to-manage bargaining or with firm-specific labour emerge as the most …

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to … paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a …

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to … paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a …

with a SVAR model by inspecting how unemployment responds to the state of the economy. We show that deviations from Okun …

This paper studies unemployment and vacancy developments in the euro area at the aggregate and country level over the … employment losses, especially in some sectors. The extent to which the rise in unemployment and particularly long …-term unemployment reflects growing mismatch across euro area labour markets is one of the biggest questions facing euro area labour …

, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are lose …