Paper #1488

Títol:

Hysteresis and the European unemployment problem revisited

Autor:

Jordi Galí

Data:

Juny 2015

Resum:

The unemployment rate in the euro area appears to contain a significant nonstationary component, suggesting that some shocks have permanent effects on that variable. I explore possible sources of this nonstationarity through the lens of a New Keynesian model with unemployment, and assess their empirical relevance.

Paraules clau:

wage stickiness, New Keynesian model, unemployment fluctuations, Phillips curve, insider-outsider model.

Codis JEL:

E24, E31, E32.

Àrea de Recerca:

Macroeconomia i Economia Internacional

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