Central Bank Conservatism and Labor Market Reform

Arbeitspapier

How does central bank conservatism affect labor market reform? In this paper we examine the economic forces at work. An increase in conservatism triggers two opposite effects. It reduces the inflation bias of discretionary monetary policy and hence the benefits of a reform. It also increases unemployment variability, which increases the precautionary benefits of a reform. In combination, the two effects produce a u-shaped relation between conservatism and labor market reform. An empirical investigation provides evidence consistent with this prediction.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 1999:23

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Central Banks and Their Policies ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy ; Wages, Compensation, and Labor Costs: Public Policy
• Thema: Central bank independence ; labor market reform ; credibility ; flexibility ; inflation ; unemployment ; rigidities ; Arbeitsmarktflexibilität ; Zentralbank ; Geldpolitik ; Geldpolitische Transmission ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Jordahl, Henrik ; Laséen, Stefan
• Ereignis: Veröffentlichung
• (wer): Uppsala University, Department of Economics
• (wo): Uppsala
• (wann): 1999

Weitere Informationen

• Handle: http://hdl.handle.net/10419/82948
• URN: urn:nbn:se:uu:diva-2468
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ