MEF Seminar Wintersemester 2021/22

Christina Patterson (Univ. of Chicago) 03.11.2022

We analyze a quasi-experiment of monetary policy and the labor market in Sweden during 2010–2011, where the central bank raised the interest rate substantially while the economy was still recovering from the Great Recession. We argue that this tightening was a large, credible, and unexpected deviation from the central bank’s historical policy rule. We show that this shock increased unemployment broadly, but the increase in unemployment varied somewhat across different types of workers, with low-tenure workers in particular being highly affected, and less across different types of firms. Moreover, we find that the structure of the labor market amplified the effects of monetary policy, as workers in sectors with more rigid wage contracts saw larger increases in unemployment.
Time
Wednesday, 03.11.2021
Topic
"Monetary Policy and the Labor Market: A Quasi-Experiment in Sweden"
Target groups

Students

Researchers

Location
via Zoom
Reservation
No
Organizer
Institute for Macroeconomics and Econometrics
Contact
Wird geladen