Monetary Policy and Unemployment in Open Economies

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. (2010) found that the risk of unemployment negatively a¤ects utility of employed workers: An increases in aggregate unemployment decreases workers'subjective wellbeing, which can be explained by an increased risk of becoming unemployed. I take account of this e¤ect in an otherwise standard New Keynesian open economy model with unemployment as in Galí (2010) and …nd two important results with respect to expansionary monetary policy shocks: First, the usual wealth e¤ect in New Keynesian models of a declining labor force, which is at odds with the data as highlighted by Christiano, Trabandt and Walentin (2010), is shut down. Second, the welfare e¤ects of such shocks improve considerably, modifying the standard results of the open economy literature that set o¤ with Obstfeld and Rogo¤'s (1995) redux model. Terms of use: Documents in EconStor may

Autoregressive Distributed Lag Modeling of the Effects of Some Macroeconomic Variables on Economic Growth in Nigeria

“…Expansionary monetary policy refers to the swift increase in the total supply of money in the economy, and contractionary monetary policy decreases the total money supply in the economy, or increases it gradually (Essien et al, 2016). For the purpose of decreasing unemployment, the Central Bank has embarked on an expansionary monetary policy which excites the domestic economy, while increasing interest rates aims at mitigating the effect of inflation when a contractionary monetary policy is adopted (Engler, 2011), while monetary policy on domestic economic activities and employment has been established (Altavilla, Ciccarelli, 2009;Saymeh, Orabi, 2013).…”

Autoregressive Distributed Lag Modeling of the Effects of Some Macroeconomic Variables on Economic Growth in Nigeria

“…Expansionary monetary policy refers to the swift increase in the total supply of money in the economy, and contractionary monetary policy decreases the total money supply in the economy, or increases it gradually (Essien et al, 2016). For the purpose of decreasing unemployment, the Central Bank embarks on an expansionary monetary policy which excites the domestic economy, while increasing interest rates aims at mitigating the effect of inflation when contractionary monetary policy is adopted (Engler, 2011). (Altavilla and Ciccarelli, 2009) premised that with the uncertain nature of the relationship between interest rate and unemployment rate, it has been established and generally accepted that there is a significant impact of monetary policy on domestic economic activities and employment.…”