Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/124901 
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers No. 9389
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Adopting a simple Phillips curve framework, we show that different labour market institutions across EU countries are associated with significant differences in the response of inflation to unemployment and exchange rate shocks. More wage coordination and higher union density flatten the Phillips curve and increase the inflation response to the real exchange rate, i.e. the exchange rate pass-through. In addition, using a new approach to the classification of goods and services as "traded" or "non-traded", we show that both these institutional effects are significantly stronger for the more exposed (traded) sector.
Subjects: 
sectoral inflation differentials
inflation determinants
labour market institutions
EU 27
JEL: 
E31
J50
J60
Document Type: 
Working Paper

Files in This Item:
File
Size
544.59 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.