The article explores how different labor market rules affect the impact of monetary policy on the economy in the U.S. and Europe. When the economy is doing well, wages and output go up, leading to higher prices. To prevent inflation, the central bank raises interest rates, which can reduce job openings, employment, and output. The study shows that the response to these changes varies depending on the labor market regulations in place. By looking at data from the U.S. and European countries, the researchers found that unemployment benefits play a key role in shaping these outcomes.