Monetary Policy and Swedish Unemployment Fluctuations
Annika Alexius () and
Bertil Holmlund
No 1329, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)
Abstract:
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.
Keywords: Unemployment; Monetary policy; structural VARs (search for similar items in EconPapers)
JEL-codes: E24 J60 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)
Downloads: (external link)
https://www.econstor.eu/bitstream/10419/17845/1/kap1329.pdf (application/pdf)
Related works:
Journal Article: Monetary Policy and Swedish Unemployment Fluctuations (2008) 
Working Paper: Monetary policy and Swedish unemployment fluctuations (2008) 
Working Paper: Monetary Policy and Swedish Unemployment Fluctuations (2007) 
Working Paper: Monetary Policy and Swedish Unemployment Fluctuations (2007) 
Working Paper: Monetary Policy and Swedish Unemployment Fluctuations (2007) 
Working Paper: Monetary Policy and Swedish Unemployment Fluctuations (2007) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1329
Access Statistics for this paper
More papers in Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().