Hysteresis and the European Unemployment Problem Revisited

  • Authors: Jordi Galí.
  • Keywords: wage stickiness , New Keynesian model , unemployment fluctuations , Phillips curve , insider-outsider model
  • JEL codes: E24, E31, E32
  • wage stickiness
  • New Keynesian model
  • unemployment fluctuations
  • Phillips curve
  • insider-outsider model

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.

Subscribe to our newsletter
Want to receive the latest news and updates from the BSE? Share your details below.
Founding institutions
Distinctions
Logo BSE
© Barcelona Graduate School of
Economics. All rights reserved.
QualityTransparencyLegalCookie PolicySite map
YoutubeFacebookLinkedinInstagramX