Inflation Pressure and European Unemployment

Kevin Carey ()

Applied Economics Letters, 2001, vol. 8, issue 1, pages 9-13

Abstract: While the recent failure of unemployment to fall in many OECD economies is often attributed to labour market rigidities, there is a strong cross-sectional correlation between changes in unemployment since the last recession and changes in inflation over the same period (1993-1997). Furthermore, this linkage is dominated by the influence of initial (i.e. 1993) inflation. This can be interpreted in terms of two effects: countries with higher 1993 inflation had less scope for relaxation of monetary policy, and may have experienced larger increases in expected inflation. These inflation pressure effects in turn are related to the EMU inflation convergence criteria. Copyright 2001 by Taylor and Francis Group

Date: 2001

Downloads: (external link)
http://taylorandfrancis.metapress.com/link.asp?id=101478 (text/html)
Access to full text is restricted to subscribers.

Related works:
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: http://EconPapers.repec.org/RePEc:taf:apeclt:v:8:y:2001:i:1:p:9-13

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.html

Access Statistics for this article

Applied Economics Letters is edited by Mark Taylor

More articles in Applied Economics Letters from Taylor and Francis Journals
Series data maintained by Christopher F. Baum ().