Unemployment and Monetary Policy in Switzerland

Peter Kugler and George Sheldon

Swiss Journal of Economics and Statistics (SJES), 2010, vol. 146, issue I, 185-208

Abstract: This paper investigates the impact of the monetary policy change of the Swiss National Bank (SNB) in 1999 on the Swiss labor market on the basis of a Phillips relationship. Theoretical considerations as well as previous empirical work suggest that the SNB's shift to a more inflation-targeted policy should have increased real-wage flexibility and lowered the NAIRU, the sacrifice ratio, and the level and persistence of inflation in Switzerland. Our results tend to confirm these expectations, although a number of the measured effects are not statistically significant.

Keywords: Inflation targeting; NAIRU; Phillips curve (search for similar items in EconPapers)
JEL-codes: E24 E31 E50 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ses:arsjes:2010-i-7

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