Replication data for: Inflation and Unemployment in the Long Run

Principal Investigator(s): View help for Principal Investigator(s) Aleksander Berentsen; Guido Menzio; Randall Wright

Version: View help for Version V1

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Project Citation:

Berentsen, Aleksander, Menzio, Guido, and Wright, Randall. Replication data for: Inflation and Unemployment in the Long Run. Nashville, TN: American Economic Association [publisher], 2011. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112400V1

Project Description

Summary: We study the long-run relation between money (inflation or interest rates) and unemployment. We document positive relationships between these variables at low frequencies. We develop a framework where money and unemployment are modeled using explicit microfoundations, providing a unified theory to analyze labor and goods markets. We calibrate the model and ask how monetary factors account for labor market behavior. We can account for a sizable fraction of the increase in unemployment rates during the 1970s. We show how it matters whether one uses monetary theory based on the search-and-bargaining approach or on an ad hoc cash-in-advance constraint. (JEL E24, E31, E41, E43, E52)

Scope of Project

JEL Classification:
      E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      E31 Price Level; Inflation; Deflation
      E41 Demand for Money
      E43 Interest Rates: Determination, Term Structure, and Effects
      E52 Monetary Policy

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V1 [2019-10-11]

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