Arbeitspapier
The US inflation-unemployment tradeoff: methodological issues and further evidence
This paper addresses the various methodological issues surrounding vector autoregressions, simultaneous equations, and chain reactions, and provides new evidence on the long-run inflation-unemployment tradeoff in the US. It is argued that money growth is a superior indicator of the monetary environment than the federal funds rate and, thus, the focus is on the inflation/unemployment responses to money growth shocks. SVAR (structural vector autoregression) and GMM (generalised method of moments) estimations confirm earlier findings in Karanassou, Sala and Snower (2005, 2008b) obtained from chain reaction structural models: the slope of the US Phillips curve is far from vertical, even in the long-run, which implies that the nominal and real sides of the economy are symbiotic. In the light of the significant and robust long-run inflation-unemployment tradeoffs, policy makers should reconsider the classical dichotomy thesis.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 4252
- Klassifikation
-
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Price Level; Inflation; Deflation
Money Supply; Credit; Money Multipliers
- Thema
-
Inflation
unemployment
money growth
SVAR
GMM
structural modelling
chain reactions
Phillips-Kurve
Geldmenge
VAR-Modell
Momentenmethode
Schätzung
USA
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Karanassou, Marika
Sala, Héctor
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2009
- Handle
- URN
-
urn:nbn:de:101:1-20090703147
- Letzte Aktualisierung
-
20.09.2024, 08:24 MESZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Karanassou, Marika
- Sala, Héctor
- Institute for the Study of Labor (IZA)
Entstanden
- 2009
Ähnliche Objekte (12)
The US inflation-unemployment tradeoff: Methodological issues and further evidence
The rise and fall of Spanish unemployment: A chain reaction theory perspective
Labour Market Flexibility and Regional Unemployment Rate Dynamics: Spain (1980-1995)
Productivity growth and the Phillips curve: A reassessment of the US experience
Inequality and employment sensitivities to the falling labour share
Labour market dynamics in Australia: What drives unemployment
Distributional consequences of capital accumulation, globalisation and financialisation in the US
Inequality and employment sensitivities to the falling labour share
Labour market flexibility and regional unemployment rate dynamics: Spain 1980 - 1995
The rise and fall of Spanish unemployment: a chain reaction theory perspective
Inflation persistence and the Phillips curve revisited
The wage-productivity gap revisited: Is the labour share neutral to employment?
The US inflation-unemployment tradeoff: Methodological issues and further evidence
The rise and fall of Spanish unemployment: A chain reaction theory perspective
Labour Market Flexibility and Regional Unemployment Rate Dynamics: Spain (1980-1995)
Productivity growth and the Phillips curve: A reassessment of the US experience
Inequality and employment sensitivities to the falling labour share
Labour market dynamics in Australia: What drives unemployment
Distributional consequences of capital accumulation, globalisation and financialisation in the US
Inequality and employment sensitivities to the falling labour share
Labour market flexibility and regional unemployment rate dynamics: Spain 1980 - 1995
The rise and fall of Spanish unemployment: a chain reaction theory perspective
Inflation persistence and the Phillips curve revisited
The wage-productivity gap revisited: Is the labour share neutral to employment?
The US inflation-unemployment tradeoff: Methodological issues and further evidence
The rise and fall of Spanish unemployment: A chain reaction theory perspective
Labour Market Flexibility and Regional Unemployment Rate Dynamics: Spain (1980-1995)
Productivity growth and the Phillips curve: A reassessment of the US experience
Inequality and employment sensitivities to the falling labour share
Labour market dynamics in Australia: What drives unemployment
Distributional consequences of capital accumulation, globalisation and financialisation in the US
Inequality and employment sensitivities to the falling labour share
Labour market flexibility and regional unemployment rate dynamics: Spain 1980 - 1995
The rise and fall of Spanish unemployment: a chain reaction theory perspective
Inflation persistence and the Phillips curve revisited