Hysteresis and the European Unemployment Problem Revisited
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.
Document Object Identifier (DOI): 10.3386/w21430
Users who downloaded this paper also downloaded* these: