The European Unemployment Gap and the Role of Monetary Policy
This study will shed some light on the debate on the impact of monetary policy on the labour market in Europe. The Phillips curve implies that demand-induced changes in inflation tend to lag behind movements in the unemployment rate, which means that a comparison between the actual unemployment rate and the NAIRU may be helpful in forecasting future changes in inflation. By using an unobserved component model with a Kalman filter we estimate the NAIRU for three countries in the euro area. Moreover, using a Markov switching model we investigate whether European monetary policy is responsible for these unemployment gaps and whether the interest rate is transmitted asymmetrically across countries
Volume (Year): 30 (2010)
Issue (Month): 2 ()
|Contact details of provider:|| |
References listed on IDEAS
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.:
- Thomas Laubach, 2001.
"Measuring The NAIRU: Evidence From Seven Economies,"
The Review of Economics and Statistics,
MIT Press, vol. 83(2), pages 218-231, May.
- Thomas Laubach, 1997. "Measuring the NAIRU : evidence from seven economies," Research Working Paper 97-13, Federal Reserve Bank of Kansas City.
- Zacharias Psaradakis & Nicola Spagnolo, 2002.
"On the Determination of the Number of Regimes in Markov-Switching Autoregressive Models,"
Computing in Economics and Finance 2002
83, Society for Computational Economics.
- Zacharias Psaradakis & Nicola Spagnolo, 2003. "On The Determination Of The Number Of Regimes In Markov-Switching Autoregressive Models," Journal of Time Series Analysis, Wiley Blackwell, vol. 24(2), pages 237-252, 03.
- Nicoletta Batini & Jennifer Greenslade, 2003.
"Measuring The UK Short-Run NAIRU,"
12, Monetary Policy Committee Unit, Bank of England.
- Ramon Maria-Dolores, .
"Asymmetries in the Cyclical Effects of Monetary Policy on Output: Some European Evidence,"
Working Papers on International Economics and Finance
- Ramón María-Dolores, 2002. "Asymmetries in the Cyclical Effects of Monetary Policy on Output: Some European Evidence," Working Papers 02-04, Asociación Española de Economía y Finanzas Internacionales.
- Favero, Carlo A. & Milani, Fabio, 2005.
"Parameter Instability, Model Uncertainty and the Choice of Monetary Policy,"
CEPR Discussion Papers
4909, C.E.P.R. Discussion Papers.
- Favero Carlo A. & Milani Fabio, 2005. "Parameter Instability, Model Uncertainty and the Choice of Monetary Policy," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-33, February.
- Hamilton, James D, 1989. "A New Approach to the Economic Analysis of Nonstationary Time Series and the Business Cycle," Econometrica, Econometric Society, vol. 57(2), pages 357-84, March.
- Grosby, M. & Olekalns, N., 1996.
"Inflation, Unemployment and the NAIRU in Australia,"
96/31, New South Wales - School of Economics.
- Mark Crosby & Nilss Olekalns, 1998. "Inflation, Unemployment and the NAIRU in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 31(2), pages 117-129.
- Crosby, M. & Olekalns, N., 1997. "Inflation, Unemployment and the Nairu in Australia," Department of Economics - Working Papers Series 543, The University of Melbourne.
- Jan Kakes & Sitikantha Pattanaik, 2000.
"The transmission of monetary shocks in the euro area: a V AR analysis based on euro-wide data,"
BNL Quarterly Review,
Banca Nazionale del Lavoro, vol. 53(213), pages 171-186.
- Jan Kakes & Sitikantha Pattanaik, 2000. "The transmission of monetary shocks in the euro area: a V AR analysis based on euro-wide data," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 53(213), pages 171-186.
- Jan Kakes & Sitikantha Pattanaik, 2000. "The transmission of monetary shocks in the euro area: a VAR analysis based on euro-wide data," MEB Series (discontinued) 2000-2, Netherlands Central Bank, Monetary and Economic Policy Department.
- Peersman, Gert & Smets, Frank, 2001. "The monetary transmission mechanism in the euro area: more evidence from VAR analysis," Working Paper Series 0091, European Central Bank.
- Laurence Boone & Claude Giorno & Mara Meacci & Dave Rae & Pete Richardson & Dave Turner, 2001. "Estimating the structural rate of unemployment for the OECD countries," OECD Economic Studies, OECD Publishing, vol. 2001(2), pages 171-216.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-10-00012. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If references are entirely missing, you can add them using this form.