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The effects of monetary policy on unemployment in Namibia

Author

Listed:
  • Tafirenyika SUNDE

    (Namibia University of Science and Technology, Nambia.)

Abstract

The main purpose of the article was to establish the effects of monetary policy on unemployment in Namibia. The article used the structural VAR methodology in a macroeconometric setting to achieve this. The results show that monetary policy affects unemployment in Namibia in the short run and in the long run, it is ineffective. These results differ from the results by Alexius & Holmlund (2007) and Jacobs et al. (2003) who found that monetary policy has a significant role to play in explaining unemployment in both the short run and the long run. This means that there is still need to investigate the other explanations of long run unemployment in Namibia such as the demand and supply related variables so that appropriate policies are propounded to address it effectively.

Suggested Citation

  • Tafirenyika SUNDE, 2015. "The effects of monetary policy on unemployment in Namibia," Journal of Economic and Social Thought, KSP Journals, vol. 2(4), pages 256-274, December.
  • Handle: RePEc:ksp:journ3:v:2:y:2015:i:4:p:256-274
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Unemployment; Structural VAR; Impulse response; Variance decomposition; Namibia; Macroeconometric modelling.;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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