Gali, Jordi, (2015), “Hysteresis and the European unemployment problem revisited”, ECB Forum on Central Banking, May
The unemployment rate in the euro area appears to contain a significant non-stationary component, suggesting that some shocks have permanent effects on that variable. I explore possible sources of this non-stationarity through the lens of a New Keynesian model with unemployment, and assess their empirical relevance.
Relevant Posts
- Fatás, Antonio, Summers, Lawrence, (2016), “Hysteresis and fiscal policy during the Global Crisis”, VoxEu, 12 October
- Mourougane, Annabelle, Botev, Jarmila, Fournier, Jean-Marc, Pain Nigel, Rusticelli, Elena, (2016), “Can an increase in public investment sustainably lift economic growth?”, OECD Economics Department Working Paper No 1351, 24 November