Hysteresis and the European unemployment problem revisited

Jordi Galí

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: 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.

Keywords: wage stickiness; New Keynesian model; unemployment fluctuations; Phillips curve; insider-outsider model. (search for similar items in EconPapers)
JEL-codes: E24 E31 E32 (search for similar items in EconPapers)
Date: 2015-06
New Economics Papers: this item is included in nep-eec, nep-mac and nep-opm
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: Hysteresis and the European Unemployment Problem Revisited (2015)
Working Paper: Hysteresis and the European Unemployment Problem Revisited (2015)
Working Paper: Hysteresis and the European Unemployment Problem Revisited (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1488

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