Central Bank Conservatism and Labor Market Reform
Henrik Jordahl () and
Stefan Laséen ()
Working Papers from Uppsala - Working Paper Series
Hoe does central bank conservatism affect labor market reform? In this paper we examine the economic forces at work. An increase in conservation triggers two opposite effects. It reduces the inflation bias of discretionary monetary policy and hence the benefits of a reform. It also increases unemployment variability, which increases the precautionary benefits of a reform. In combination, the two effects produce a u-shaped relation between conservatism and labor market reform. An empirical investigation provides evidence consistent with this prediction.
Keywords: CENTRAL BANKS; LABOUR MARKET; UNEMPLOYMENT; INFLATION (search for similar items in EconPapers)
JEL-codes: E58 E63 J38 (search for similar items in EconPapers)
Pages: 15 pages
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Working Paper: Central Bank Conservatism and Labor Market Reform (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fth:uppaal:1999:23
Access Statistics for this paper
More papers in Working Papers from Uppsala - Working Paper Series UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().