Non-accelerating wage inflation rate of unemployment in Poland

Katarzyna Budnik
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Katarzyna Budnik: National Bank of Poland, Economic Institute, http://www.nbp.pl

No 48, National Bank of Poland Working Papers from National Bank of Poland, Economic Institute

Abstract: The model of the wage bargaining constitutes a framework for calculation of the NAWRU in Poland. The approach used in the paper let me trace changes of the natural unemployment rate in Poland in the context of structural changes in the economy in the last decade. Moreover, I introduced the endogenous equilibrium rate into the existing macroeconomic model — ECMOD. It allowed me to simulate NAWRU behavior after economic shocks. Simulation results shed some light on channels and speed of adjustment of the modelled economy. Interestingly, when NAWRU is tied to the stock of capital, relative prices and fiscal variables, the model is able to replicate high degree of the unemployment persistence.

Keywords: equilibrium unemployment; NAWRU; macromodel; labour market (search for similar items in EconPapers)
JEL-codes: E10 E17 E24 E62 (search for similar items in EconPapers)
Date: 2008-05
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Persistent link: http://EconPapers.repec.org/RePEc:nbp:nbpmis:48

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