Monetary Policy and Swedish Unemployment Fluctuations
26 Pages Posted: 18 Dec 2010
There are 3 versions of this paper
Monetary Policy and Swedish Unemployment Fluctuations
Monetary Policy and Swedish Unemployment Fluctuations
Date Written: 2008
Abstract
A widely spread belief among economists is that monetary policy has relatively short-lived effects on real variables such as unemployment. Previous studies indicate that monetary policy affects the output gap only at business cycle frequencies, but the effects on unemployment may well be more persistent in countries with highly regulated labor markets. We study the Swedish experience of unemployment and monetary policy. Using a structural VAR we find that around 30 percent of the fluctuations in unemployment are caused by shocks to monetary policy. The effects are also quite persistent. In the preferred model, almost 30 percent of the maximum effect of a shock still remains after ten years. --
Keywords: Unemployment, monetary policy, structural VARs
JEL Classification: J60, E24
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Sources of Unemployment Fluctuations: An Empirical Application to the Italian Case
By Silvia Fabiani, Alberto Locarno, ...
-
Beyond National Institutions: Labor Taxes and Regional Unemployment in Italy
By Giorgio Brunello, Claudio Lupi, ...
-
Economic Performance and Unemployment: Evidence from an Emerging Economy - Turkey
By Hakan Berument, Nukhet Dogan, ...
-
Monetary Policy and Swedish Unemployment Fluctuations
By Annika Alexius and Bertil Holmlund
-
Monetary Policy and Swedish Unemployment Fluctuations
By Annika Alexius and Bertil Holmlund
-
Inflation, Unemployment, the Exchange Rate, and Monetary Policy in Israel, 1990–99: A SVAR Approach
By Joseph Djivre and Sigal Ribon
-
Recent Macroeconomic Performance in Colombia: What Went Wrong?
-
Macroeconomic Policy and Unemployment by Economic Activity: Evidence from Turkey
By Hakan Berument, Nukhet Dogan, ...
-
Macroeconomic Policy and Unemployment by Economic Activity: Evidence from Turkey
By Hakan Berument, Nukhet Dogan, ...