Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Institute for Capacity Development, issuing body.
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| ISBN: | 9781484372579
1484372573
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| Notes: | "Institute for Capacity Development"--Page 2 of pdf.
"May 2014"--Page 2 of pdf.
Includes bibliographical references.
Online resource; title from pdf title page (IMF.org Web site, viewed June 4, 2014).
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| Summary: | "This paper develops and estimates a general equilibrium rational expectations model with search and multiple equilibria where aggregate shocks have a permanent effect on the unemployment rate. If agents' wealth decreases, the unemployment rate increases for a potentially indefinite period. This makes unemployment rate dynamics path dependent as in Blanchard and Summers (1987). I argue that this feature explains the persistence of the unemployment rate in the U.S. after the Great Recession and over the entire postwar period"--Abstract.
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