money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal …. -- inflation ; unemployment ; search-matching ; Friedman rule … monetary growth rate decreases with the workers' bargaining power, the level of unemployment benefits and the payroll tax rate …

money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal … monetary growth rate decreases with the workers' bargaining power, the level of unemployment benefits and the payroll tax rate …

-run Phillips curve between inflation and unemployment and a trade-off between price distortions and output hysteresis that change …Standard New Keynesian (NK) models feature an optimal inflation target well below two percent, limited welfare losses … the welfare-maximizing inflation level. For a plausible set of parameters, the optimal inflation target is in excess of …

marginal costs with respect to output and thus help to account for the observed inertia in inflation …

This paper integrates a theory of equilibrium unemployment into a monetary model with nominal price rigidities. The … matching frictions and bargaining over real wages and hours of work. Search frictions generate unemployment in equilibrium … for inflation dynamics: under right-to-manage, the real wage rigidity also results in smaller fluctuations of inflation …

correlated with inflation. While existing studies of monetary policy and unemployment only consider consumer money, we build a … greatly amplifies the effect of monetary policy on unemployment, and that an increase in inflation reduces the firm money …

employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of …). Accordingly, the efficient unemployment rate is the geometric average of the unemployment and vacancy rates: u* = √uv. We compute …

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 …

When workers are exposed to human capital depreciation during periods of unemployment, hiring affects the unemployment … during unemployment into an otherwise standard New Keynesian model with search frictions in the labour market leads to the …, it might be desirable from a social point of view for monetary policy to deviate from strict inflation targeting. But …