The Impact of Monetary Policy on Unemployment Hysteresis

Engelbert Stockhammer and Simon Sturn

No 15-2008, IMK Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute

Abstract: This paper investigates the hypothesis that the extent to which hysteresis occurs in the aftermath of recessions depends on monetary policy reactions. The degree of hysteresis is explained econometrically by the extent of monetary easing during a recession and by standard variables for labour market institutions in a pooled cross-country analysis using quarterly data. The sample includes 40 recessions in 19 OECD countries for which the required data is available. The time period lasts from 1980 to 2007. The paper builds on Ball (1999) and extends the sample of countries, the time period under investigation and the set of control variables.

Keywords: monetary policy; NAIRU; structual unemployment; hysteresis; endogenous NAIRU (search for similar items in EconPapers)
JEL-codes: E24 E39 E50 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2008
New Economics Papers: this item is included in nep-cba, nep-lab, nep-mac, nep-mon and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: The impact of monetary policy on unemployment hysteresis (2012)
Journal Article: The impact of monetary policy on unemployment hysteresis (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:imk:wpaper:15-2008

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