Monetary Policy and Swedish Unemployment Fluctuations

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 2 ; Year: 2008 ; Issue: 2008-4 ; Pages: 1-25 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification and Topics

• Classification: Wirtschaft ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
• Subject: Unemployment ; monetary policy ; structural VARs ; Geldpolitik ; Schock ; Arbeitslosigkeit ; Hysteresis ; Schätzung ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Holmlund, Bertil ; Alexius, Annika
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2008

Further information

• DOI: doi:10.5018/economics-ejournal.ja.2008-4
• Handle: http://hdl.handle.net/10419/18017
• Last update: 10.03.2025, 11:43 AM CET