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This paper has two aims. First, it provides simple theoretical models that highlight two channels whereby monetary shocks have permanent real effects and the interactions between these channels. Second, it presents an empirical dynamic model, covering a panel of EU countries, and derives the implied long-run inflation-unemployment tradeoff. Our res...
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... implies that price and wage persistence are complementary in generating the long-run inflation-unemployment tradeoff. Figure 6 describes the influence of the real rigidities (the lagged adjustment of real variables). We consider the following: an employment adjustment effect (lagged employment in the employment equation), a labor force adjustment effect (lagged labor force in the labor force equation), a capital stock adjustment effect (lagged capital stock in the capital stock equation), and an output adjustment effect (lagged output in the output equation). ...
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... Therefore, any shortfall from the expected crude oil price reduces the expected revenue and government spending and negatively affects the economy. This finding also corroborates the results of Karanassou et al (2010) who noted that fluctuation in expected oil price reinforces inflation. ...
The study examined the influence of expected oil price on inflation rate with the view of understanding the behavior of inflation as a result of shocks on the expected crude oil prices in Nigeria. The study employed an Autoregressive Distributed lag (ARDL) and Bound testing cointegration approach in order to examine both the short-run and the long-run effects of the variables. The estimation result shows that expected oil price has a significant and positive effect on inflation both in the long-run and short-run in Nigeria. Surprisingly, in the long-run, interest rate has a positive and significant effect on inflation rate as against apriori expectations. It is therefore recommended that the Nigerian government diversify its resource base, and rely less on crude oil that is more susceptible to oil price shocks, thereby reducing the effects of oil price on
... It has been labelled counterproductive as it encourages policy makers to enforce a rate of unemployment for the sake of price stability, despite there being no connection between the two variables (Klein, 2017). Furthermore, there is an overabundance of literature that fails to find any empirical evidence that the NAIRU exists, or that it would even be stable enough to draft policy from (Mitchell, 1987;Setterfield, 1996;Espinosa-Vega & Russell, 1997;Galbraith, 1997;Straiger & Watson, 1997;Skott, 1999;Fair, 2000;Laubach, 2001;Karanassou et al., 2003;Schreiber & Wolters, 2007;Hail, 2018). The introduction of the NAIRU re-established the previously refuted Say's law which asserts that free markets can provide full employment, and that unemployment rates that are lower than NAIRU will cause inflation (Mitchell & Muysken, 2008). ...
This paper explores the effects of the job guarantee and universal basic income on the wider system of neoliberalism. To illustrate the dominance of neoliberalism as system, this paper uses Foucault’s poststructuralist framework of governmentality and disciplinary power to identify how neoliberalism functions as a system, highlighting how it impacts the individual’s cognitive processes and behaviours. Neoliberal governmentality can therefore be understood as a set of specific social conditions implemented to cultivate a moral framework where the individual can pursue self-interest above all else. The ideal neoliberal citizen is someone who is morally responsible for using rationality and market-based values to pursue self-interest to the omission of all other values. The paper combines this concept to with the ethical foundations of the ideology based on the literature of the original proponents. It then contrasts these with two economic policies; a job guarantee and universal basic income, and then provides a discussion. This allows for an ethical and structural analysis of neoliberalism.
... Su estimación ha girado en torno a dos posturas fundamentales: considerar la NAIRU como una magnitud constante, o bien, como una magnitud variable. Sin importar la postura, existe un acuerdo teórico común en el que se acepta que el nivel de desempleo solo puede permanecer por debajo de la NAIRU si el nivel de precios se acelera, o, en caso contrario, puede permanecer por encima de la NAIRU si el nivel de precios se desacelera (Karanassou et al., 2003). ...
Impacto de la política monetaria en el equilibrio del mercado de trabajo: países de la Alianza del Pacífico 1 Resumen Este artículo analiza el impacto de la política monetaria en la tasa de desempleo no aceleradora de la inflación (NAIRU), o equilibrio de los mercados de trabajo para los países que pertenecen a la Alianza del Pacífico (Chile, Colombia, Perú y México). Los movimientos NAIRU se determinan para cada país. Además, se estiman modelos de vectores autorregresivos para evaluar el impacto de la política monetaria en el mercado laboral de cada uno de los países de la Alianza del Pacífico. Los resultados muestran que la política monetaria impacta la NAIRU de Chile, Colombia y Perú, mientras que los shocks de tal política no tienen repercusión significativa en la NAIRU de México.
Palabras clave: mercado laboral, desempleo, inflación, política monetaria, modelos VAR models.
JEL Classificarion: E24, E31, E52, J01.
... Su estimación ha girado en torno a dos posturas fundamentales: considerar la NAIRU como una magnitud constante, o bien, como una magnitud variable. Sin importar la postura, existe un acuerdo teórico común en el que se acepta que el nivel de desempleo solo puede permanecer por debajo de la NAIRU si el nivel de precios se acelera, o, en caso contrario, puede permanecer por encima de la NAIRU si el nivel de precios se desacelera (Karanassou et al., 2003). ...
Este artículo analiza el impacto de la política monetaria en la tasa de desempleo no aceleradora de la inflación (NAIRU), o equilibrio de los mercados de trabajo para los países que pertenecen a la Alianza del Pacífico (Chile, Colombia, Perú y México). Los movimientos NAIRU se determinan para cada país. Además, se estiman modelos de vectores autorregresivos para evaluar el impacto de la política monetaria en el mercado laboral de cada uno de los países de la Alianza del Pacífico. Los resultados muestran que la política monetaria impacta la NAIRU de Chile, Colombia y Perú, mientras que los shocks de tal política no tienen repercusión significativa en la NAIRU de México.
... Due to the quantity theory, speedy growth of money is well-known attribute of monetary satisfaction; it is interrelated with high rates of interest as well as with high rates of inflations. Karanassou, Sala, & Snower (2003); empirically scrutinized the long-run trade off stuck between unemployment and inflation by use (Panel Data Study) in favor of European countries. They empirically originate that long-run trade off stuck between unemployment and inflation does stay alive in casing of the European countries. ...
this is research journal which contain research papers
... Due to the quantity theory, speedy growth of money is well-known attribute of monetary satisfaction; it is interrelated with high rates of interest as well as with high rates of inflations. Karanassou, Sala, & Snower (2003); empirically scrutinized the long-run trade off stuck between unemployment and inflation by use (Panel Data Study) in favor of European countries. They empirically originate that long-run trade off stuck between unemployment and inflation does stay alive in casing of the European countries. ...
this is research journal which contain research papers
... Due to the quantity theory, speedy growth of money is well-known attribute of monetary satisfaction; it is interrelated with high rates of interest as well as with high rates of inflations. Karanassou, Sala, & Snower (2003); empirically scrutinized the long-run trade off stuck between unemployment and inflation by use (Panel Data Study) in favor of European countries. They empirically originate that long-run trade off stuck between unemployment and inflation does stay alive in casing of the European countries. ...
The objective of this research was to determine the effect of perceived organizational support on the three components of organizational commitment. Primary data through survey questionnaire was collected from the college teachers of Sindh Province Pakistan. Through the empirical investigation of the data it was found that college teachers perceived support from their organization and they were committed to their organization. Perceived organizational support was found to have significant effect on the affective, continuance and normative commitment of the teachers. However the effect of perceived organizational support on normative commitment was lesser than its effect on affective and continuance commitment. This study contributed to determine the effect of perceived organizational support on the commitment level of the college teachers in context of Pakistan. The implications of the results are discussed.
... After a decade, Friedman (1968) notes that the trade-off would no longer remain in the long run; it is a short run phenomenon and is accidental and temporary to occur. Though later on studies provide supports to the short run as well as long run inflation and unemployment trade-off (King & Watson 1994;Hansen & Pancs 2001, Graham & Snower 2002, Hart 2003, Karanassou, et al. 2003, Franz, 2005Shahbaz et al., 2012).Here, we are not concerned with the issue that the trade-off exist in short or long run or is temporary or permanent, but our major concern is the importance of the phenomena. Basically the curve is concerned with two core variables of macroeconomics that every nation needs for long run stability. ...
... After a decade, Friedman (1968) notes that the trade-off would no longer remain in the long run; it is a short run phenomenon and is accidental and temporary to occur. Though later on studies provide supports to the short run as well as long run inflation and unemployment trade-off (King & Watson 1994;Hansen & Pancs 2001, Graham & Snower 2002, Hart 2003, Karanassou, et al. 2003, Franz, 2005Shahbaz et al., 2012).Here, we are not concerned with the issue that the trade-off exist in short or long run or is temporary or permanent, but our major concern is the importance of the phenomena. Basically the curve is concerned with two core variables of macroeconomics that every nation needs for long run stability. ...
... After a decade, Friedman (1968) notes that the trade-off would no longer remain in the long run; it is a short run phenomenon and is accidental and temporary to occur. Though later on studies provide supports to the short run as well as long run inflation and unemployment trade-off (King & Watson 1994;Hansen & Pancs 2001, Graham & Snower 2002, Hart 2003, Karanassou, et al. 2003, Franz, 2005Shahbaz et al., 2012).Here, we are not concerned with the issue that the trade-off exist in short or long run or is temporary or permanent, but our major concern is the importance of the phenomena. Basically the curve is concerned with two core variables of macroeconomics that every nation needs for long run stability. ...
