Unemployment Persistence, Central Bank Independence and Inflation Performance in the OECD Countries

We test the Barro-Gordon model extended to allow for persistence in unemployment. First, we build an index of central bank independence and measures of persistence, and then we compare them with inflation performance in OECD countries. Our results show, as theory predicts, a robust negative relationship between the degree of independence and the level and variance of inflation.

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Year of publication:	1997
Authors:	Alberola, E. ; Marques, J.M. ; Sanchis, A.
Subject:	UNEMPLOYMENT \| CENTRAL BANKS \| INFLATION

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Type of publication:	Book / Working Paper
Notes:	35 pages
Classification:	E31 - Price Level; Inflation; Deflation ; E24 - Employment; Unemployment; Wages ; E58 - Central Banks and Their Policies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005657305