Skip to content

Advertisement

  • Open Access

Unemployment and monetary policy in Switzerland

Swiss Journal of Economics and Statistics2010146:BF03399301

https://doi.org/10.1007/BF03399301

  • Published:

Summary

This paper investigates the impact of the monetary policy change of the Swiss National Bank (SNB) in 1999 on the Swiss labor market on the basis of a Phillips relationship. Theoretical considerations as well as previous empirical work suggest that the SNB’s shift to a more inflation-targeted policy should have increased real-wage flexibility and lowered the NAIRU, the sacrifice ratio, and the level and persistence of inflation in Switzerland. Our results tend to confirm these expectations, although a number of the measured effects are not statistically significant.

Keywords

  • inflation targeting
  • NAIRU
  • Phillips curve

Advertisement