| Abstract | We prompt a new Keynesian monetary DSGE framework with unemployment, and the bayes impulse response function of exogenous technology shocks, preference shocks and the monetary shocks based on the DSGE-BVAR approach. We find that all of the three shocks play important role in unemployment, and monetary shocks are more important in the persistence of unemployment than the other two. Then, we do sensitivity analysis on the relationship between unemployment persistence and work preference parameter and output-labor substitution parameter. The result shows that the variation of the two parameters do not alter the conclusion of this paper, but do affect the persistence of unemployment. Therefore, work preference and output-labor substitution play significant role in the persistence of unemployment. |