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Nicht zu früh bremsen! - Der Einfluss der Geldpolitik auf die langfristige Wirtschaftsentwicklung in Deutschland und den USA-

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Author Info
Ronald Schettkat () (Department of Economics University of Wuppertal)
Rongrong Sun (Department of Economics University of Wuppertal)
Abstract

Almost all institutions - employment protection legislation, unions, wages, wage structure, unemployment insurance, etc. - have been alleged and found guilty to have caused this tragic development at some point in the long history of rising and persistent unemployment in Europe. US labor market institutions, assumed to leave markets unfettered, became the benchmark for Europe. Based on the assertion of neutrality of monetary policy in the medium and long run, the search for causes of European unemployment has shielded away from the policy of central banks. Actually, however, the institutional setup regarding monetary policy is very different between the FED and the Bundesbank (ECB). We argue that the interaction of negative external shocks and tight monetary policies may have been the major - although probably not the only - cause of unemployment in Europe remaining at ever higher levels each recession. We identify the monetary policy of the Bundesbank as asymmetrical in the sense that the Bank did not actively fight recessions, but that it dampened recovery periods.

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Paper provided by Universitätsbibliothek Wuppertal, University Library in its series Schumpeter Discussion Papers with number sdp09003.

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Length: 41
Date of creation: Mar 2009
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Handle: RePEc:bwu:schdps:sdp09003

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Related research
Keywords: Production; Employment; Unemployment; Monetary Policy; Central Banks and Their Policies;

Find related papers by JEL classification:
E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Determination of Interest Rates; Term Structure of Interest Rates
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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