Effect of Vacancies on Unemployment Matching function: (3) 𝐻𝐻 = 𝐹𝐹 𝑉𝑉, 𝑈𝑈 = 𝜇𝜇𝑉𝑉 𝜎𝜎 𝑈𝑈1−𝜎𝜎 Job finding: (4)  𝐻𝐻 𝑉𝑉 𝜎𝜎 𝑓𝑓 = = 𝜇𝜇 ∗ 𝑈𝑈 𝑈𝑈  Implied Relationship between Vacancies and Unemployment: (5)  𝑈𝑈 =  𝑠𝑠  𝑉𝑉 𝜎𝜎 𝑠𝑠+𝜇𝜇∗ 𝑈𝑈  Note. 𝐻𝐻=hires; 𝑉𝑉=vacancies; 𝜇𝜇=matching efficiency; 𝜎𝜎=matching parameter. 8. Beveridge Curves and Recoveries  9.
Beveridge Curves and Recoveries  10. Beveridge Curve and Future Unemployment  11. Vacancies and Layoffs  Endnotes •  •  •  Figure 1: The line's solid segments are historical policy rates and dashed segments are implied projections of the federal funds rate.