Arbeitspapier

The European Phillips curve: does the NAIRU exist?

This paper has two aims. First, it provides simple theoretical models that highlight two channels whereby monetary shocks have permanent real effects and the interactions between these channels. Second, it presents an empirical dynamic model, covering a panel of EU countries, and derives the implied long-run inflation-unemployment tradeoff. Our results suggest that the tradeoff is far from vertical. We also find that wage persistence plays a larger role than price persistence in generating the tradeoff, but that the two forms of persistence are complementary in giving monetary policy its long-run real effects. Our results call for a reassessment of the European macroeconomic experience.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 876

Klassifikation
Wirtschaft
Thema
Phillips curve
nominal inertia
monetary policy
business cycles
forward-looking expectations
homogeneous dynamic panels
Phillips-Kurve
Natürliche Arbeitslosigkeit
Geldpolitik
Transmissionsmechanismus
Schätzung
EU-Staaten

Ereignis
Geistige Schöpfung
(wer)
Karanassou, Marika
Sala, Héctor
Snower, Dennis J.
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2003

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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
  • Snower, Dennis J.
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2003

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