Unemployment in an Estimated New Keynesian Model
---- Acknowledgements -----
Prepared for the NBER Macroeconomics Annual 2011 Conference, held in Cambridge, MA on April 8-9, 2011. We have benefited from comments by Larry Christiano, Marco del Negro, Keith Kuester, Richard Rogerson, Carlos Thomas, and participants at the NBER Summer Institute, SED Conference (Montréal), Banque de France, Harvard, EUI (Florence), Bank of Cyprus, CREI-UPF, ECB, Leuven, Insead and PSE. Galí acknowledges the financial support from the European Research Council through an Advanced Grant (Project Reference #229650). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.