Unobserved effects of monetary policy in the Peru’s departments output and unemployment
This is the first article in a series of two. A NAIRU-Keynesian model is developed for Peru’s departments (regions) to analyse whether there is a stable relationship between inflation and unemployment, and inflation and the output gap as documented in the Peruvian literature. I applied GLS for model...
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2023 |
| País: | Perú |
| Institución: | Universidad Nacional Mayor de San Marcos |
| Repositorio: | Revistas - Universidad Nacional Mayor de San Marcos |
| Idioma: | inglés |
| OAI Identifier: | oai:revistasinvestigacion.unmsm.edu.pe:article/25024 |
| Acceso en línea: | https://revistasinvestigacion.unmsm.edu.pe/index.php/econo/article/view/25024 |
| Access Level: | acceso abierto |
| Palabra clave: | Phillips curve monetary policy decentralised effects inflation unemployment Curva de Phillips política monetaria efectos descentralizados inflación desempleo |
| Sumario: | This is the first article in a series of two. A NAIRU-Keynesian model is developed for Peru’s departments (regions) to analyse whether there is a stable relationship between inflation and unemployment, and inflation and the output gap as documented in the Peruvian literature. I applied GLS for model estimation. My results document a positive relationship between future inflation rates and the gap in departmental unemployment rates concerning national unemployment rates, I evidence the Phillips curve flattening at the departmental level when estimating with the output gap, which is consistent with the national aggregate models, but there is a more elastic relationship when estimating with departmental unemployment rates. This represents unobserved effects for the monetary policy maker and requires further research. |
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