Unemployment and monetary policy: a revisit and new job strategies

Abstract

This paper revisits the natural unemployment rate and some studies of labor markets with search frictions that it has inspired. New job strategies being proposed suggest a need for an enhanced labor market research agenda, which looks at additional movements in the labor force. New directions in the conduct of monetary policy beyond concerns over dangers to banks and financial markets posed by interest-rate adjustment may follow as a matter of course in the context of newly emerged labor market policy.