EconPapers    
Economics at your fingertips  
 

The role of labor market structure and shocks for monetary policy in Kazakhstan

Alisher Tolepbergen ()

International Journal of Economic Policy Studies, 2022, vol. 16, issue 1, No 9, 179-210

Abstract: Abstract In this paper , we study the role of labor market structure and shocks for monetary policy in Kazakhstan employing a New Keynesian model with labor market rigidities. We estimate the model using Bayesian techniques to identify labor market shocks that are important for monetary policy-making. The estimation results suggest that shocks to the bargaining power of workers explain most of the output and inflation fluctuations. Thus, it should be closely monitored by the central bank. In addition, we examine to what extent different labor market characteristics affect the transmission of monetary policy. The results show that a more flexible wage-setting process improves the transmission mechanism. A monetary policy shock translates faster to inflation. Furthermore, we find that the relevance of other features of the labor market for the transmission of monetary policy shocks is limited.

Keywords: DSGE; Labor market; Wage rigidity; Bargaining; Bayesian estimation (search for similar items in EconPapers)
JEL-codes: C11 E32 E52 J64 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s42495-021-00073-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: The role of labor market structure and shocks for monetary policy in Kazakhstan (2021) Downloads
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:spr:ijoeps:v:16:y:2022:i:1:d:10.1007_s42495-021-00073-2

Ordering information: This journal article can be ordered from
https://www.springer ... policy/journal/42495

DOI: 10.1007/s42495-021-00073-2

Access Statistics for this article

International Journal of Economic Policy Studies is currently edited by Akira Maeda

More articles in International Journal of Economic Policy Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-09-04
Handle: RePEc:spr:ijoeps:v:16:y:2022:i:1:d:10.1007_s42495-021-00073-2