Sources of Unemployment Fluctuations in the USA and in the Euro Area in the Last Decade

Antonio Ribba ()

Department of Economics from University of Modena and Reggio E., Faculty of Economics "Marco Biagi"

Abstract: The aim of this paper is to investigate the role played by macroeconomic shocks in shaping unemployment fluctuations, both in the USA and in the Euro area, in the recent, European Monetary Union, period. The task is accomplished by estimating a VAR model which jointly considers US and European variables. We identify the structural disturbances through sign restrictions on the dynamic response of variables. Our results show that there are real effects of monetary policy shocks and of non-monetary policy, financial shocks in both economic areas. Moreover, a significant role is also exerted by business cycle, adverse aggregate demand shocks. We provide an estimation of the relative importance of the identified structural shocks in explaining the variability of inflation and unemployment. Not surprisingly, in the last decade an important role has been played by financial shocks.

Keywords: Structural VARs; Euro Area; Monetary Policy; Unemployment (search for similar items in EconPapers)
JEL-codes: C32 E40 (search for similar items in EconPapers)
Pages: pages 28
Date: 2010-04
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac and nep-mon
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Related works:
Journal Article: Sources of unemployment fluctuations in the USA and in the Euro Area in the last decade (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:mod:depeco:0627

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