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The Interaction Between Labor Market Policy and Monetary Policy: An Analysis of Time Inconsistency Problems
Stockholms universitet, Samhällsvetenskapliga fakulteten, Institutet för internationell ekonomi.
2002 (engelsk)Rapport (Annet vitenskapelig)
Abstract [en]

This paper studies the interaction between time inconsistency problems in labor market policy and monetary policy. When both policies are discretionary, there is a positive inflation bias, whereas the bias market programs may be either positive or negative. A commitment of labor market programs to zero increases inflation, as compared to the case when both labor market policy and monetary policy are discretionary. Delegation of labor market policy to a liberal labor market board may improve the discretionary outcome, even if labor market programs crowd out regular employment. A conservative central bank always reduces the social loss, even when monetary policy interacts with labor market policy.

sted, utgiver, år, opplag, sider
Stockholm: IIES , 2002. , s. 43
Serie
Seminar Paper / Institute for International Economic Studies, Stockholm University. (Online), ISSN 1653-610X ; 708
HSV kategori
Identifikatorer
URN: urn:nbn:se:su:diva-42023OAI: oai:DiVA.org:su-42023DiVA, id: diva2:343724
Tilgjengelig fra: 2010-08-16 Laget: 2010-08-16 Sist oppdatert: 2010-08-16bibliografisk kontrollert

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