Monetary policy and Swedish unemployment fluctuations

"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...

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Main Authors: Alexius, Annika, Holmlund, Bertil
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2007
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19189823124919070059-Monetary-policy-and-Swedish-un.htm
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author Alexius, Annika
Holmlund, Bertil
author_facet Alexius, Annika
Holmlund, Bertil
collection Library items
description "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."
format TEXT
geographic Sweden
id 19189823124919070059_6cd440beedbd465b83f44dbf6672c3e8
institution ETUI-European Trade Union Institute
is_hierarchy_id 19189823124919070059_6cd440beedbd465b83f44dbf6672c3e8
is_hierarchy_title Monetary policy and Swedish unemployment fluctuations
language English
physical 27 p.
Digital
publishDate 2007
publisher Bonn
IZA
spellingShingle Alexius, Annika
Holmlund, Bertil
fiscal policy
history
monetary policy
statistics
unemployment
Monetary policy and Swedish unemployment fluctuations
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=117947993512
title Monetary policy and Swedish unemployment fluctuations
topic fiscal policy
history
monetary policy
statistics
unemployment
url https://www.labourline.org/KENTIKA-19189823124919070059-Monetary-policy-and-Swedish-un.htm