Inflation and unemployment in Switzerland: from 1970 to 2050
AbstractAn empirical model is presented linking inflation and unemployment rate to the change in the level of labour force in Switzerland. The involved variables are found to be cointegrated and we estimate lagged linear deterministic relationships using the method of cumulative curves, a simplified version of the 1D Boundary Elements Method. The model yields very accurate predictions of the inflation rate on a three year horizon. The results are coherent with the models estimated previously for the US, Japan, France and other developed countries and provide additional validation of our quantitative framework based solely on labour force. Finally, given the importance of inflation forecasts for the Swiss monetary policy, we present a prediction extended into 2050 based on official projections of the labour force level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 28887.
Date of creation: 14 Feb 2011
Date of revision:
Inflation; Unemployment; Labour force; Forecasting; Switzerland;
Other versions of this item:
- Oleg KITOV & Ivan KITOV, 2012. "Inflation And Unemployment In Switzerland: From 1970 To 2050," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 7(2(20)/ Su), pages 141-156.
- Oleg Kitov & Ivan Kitov, 2011. "Inflation and unemployment in Switzerland: from 1970 to 2050," Papers 1102.5405, arXiv.org.
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-26 (All new papers)
- NEP-CBA-2011-02-26 (Central Banking)
- NEP-FOR-2011-02-26 (Forecasting)
- NEP-LAB-2011-02-26 (Labour Economics)
- NEP-MAC-2011-02-26 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James H. Stock & Mark W. Watson, 2008.
"Phillips curve inflation forecasts,"
Conference Series ; [Proceedings],
Federal Reserve Bank of Boston.
- Kitov, Ivan & Kitov, Oleg & Dolinskaya, Svetlana, 2007.
"Inflation as a function of labor force change rate: cointegration test for the USA,"
2734, University Library of Munich, Germany.
- Ivan O. Kitov & Oleg I. Kitov & Svetlana A. Dolinskaya, 2008. "Inflation as a function of labor force change rate: cointegration test for the USA," Papers 0811.0892, arXiv.org.
- Ivan Kitov & Oleg Kitov & Svetlana Dolinskaya, 2007. "Inflation as a Function of Labor Force Change Rate: Cointegration Test for the USA," Mechonomics mechonomics3, Socionet.
- Lisi, Gaetano, 2010.
"The unemployment volatility puzzle: the role of the underground economy,"
22689, University Library of Munich, Germany.
- Lisi GAETANO, 2010. "The Unemployment Volatility Puzzle: The Role Of The Underground Economy," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 5(2(12)/Sum), pages 59-69.
- Hock, Thorsten & Zimmermann, Patrick, 2005. "Forecasting monetary policy in Switzerland: Some empirical assistance," W.E.P. - WÃ¼rzburg Economic Papers 60, University of Würzburg, Chair for Monetary Policy and International Economics.
- Libich, Jan, 2008.
"An explicit inflation target as a commitment device,"
Journal of Macroeconomics,
Elsevier, vol. 30(1), pages 43-68, March.
- Jan Libich, 2006. "An Explicit Inflation Target As A Commitment Device," CAMA Working Papers 2006-22, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Laura Ungureanu & Ion Viorel Matei, 2007. "Nonlinear Problems In Economic Development," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 2(1(2)_Fall).
- Samuel Reynard, 2006. "Money and the Great Disinflation," Working Papers 2006-07, Swiss National Bank.
- Petra Gerlach-Kristen, 2007.
"A Two-Pillar Phillips Curve for Switzerland,"
Swiss Journal of Economics and Statistics (SJES),
Swiss Society of Economics and Statistics (SSES), vol. 143(IV), pages 425-448, December.
- Ivan O. Kitov, 2006. "Inflation, unemployment, labor force change in the USA," Working Papers 28, ECINEQ, Society for the Study of Economic Inequality.
- Thorsten Hock & Patrick Zimmermann, 2005. "Forecasting Monetary Policy in Switzerland: Some Empirical Assistance," Financial Markets and Portfolio Management, Springer, vol. 19(2), pages 201-212, August.
- Simone Elmer & Thomas Maag, 2009. "The Persistence of Inflation in Switzerland: Evidence from Disaggregate Data," KOF Working papers 09-235, KOF Swiss Economic Institute, ETH Zurich.
- Joseph Deutsch & Yves Fluckiger & Jacques Silber, 2007.
"On Various Ways of Measuring Unemployment, with Applications to Switzerland,"
Economics Working Paper Archive
wp_509, Levy Economics Institute, The.
- Jacques Silber & Joseph Deutsch & Yves Flückiger, 2007. "On Various ways of Measuring Unemployment, with Applications to Switzerland," Working Papers 2007-20, FEDEA.
- repec:ebl:ecbull:v:3:y:2008:i:47:p:1-5 is not listed on IDEAS
- Andrew Atkeson & Lee E. Ohanian., 2001. "Are Phillips curves useful for forecasting inflation?," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Win, pages 2-11.
- Ivan Kitov, 2007.
"Inflation, Unemployment, Labor Force Change in European Counties,"
- Kitov, Ivan, 2007. "Inflation, unemployment, labor force change in European countries," MPRA Paper 14557, University Library of Munich, Germany.
- Veli YILANCI, 2008. "Are Unemployment Rates Nonstationary or Nonlinear? Evidence from 19 OECD Countries," Economics Bulletin, AccessEcon, vol. 3(47), pages 1-5.
- Ivan O. KITOV & Oleg I. KITOV, 2010. "Dynamics Of Unemployment And Inflation In Western Europe: Solution By The 1- D Boundary Elements Method," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 5(2(12)/Sum), pages 94-113.
- Mirdala, Rajmund, 2012. "Interest Rates Determination and Crisis Puzzle (Empirical Evidence from the European Transition Economies)," MPRA Paper 43756, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.