The Influence of Central Bank Transparency on Labor Market Regulation

16 Pages Posted: 18 Dec 2013

See all articles by Carsten Hefeker

Carsten Hefeker

HWWA Institute of International Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Michael Neugart

Technical University of Darmstadt

Date Written: January 2014

Abstract

The paper develops a theory about the relation between monetary uncertainty and government incentives to implement reforms to reduce structural distortions in labor markets. We show that uncertainty about the central bank's behavior leads to more reforms. Empirical tests employing recently developed measures of central bank transparency around the world support our main propositions.

Suggested Citation

Hefeker, Carsten and Neugart, Michael, The Influence of Central Bank Transparency on Labor Market Regulation (January 2014). The Manchester School, Vol. 82, Issue 1, pp. 17-32, 2014, Available at SSRN: https://ssrn.com/abstract=2369107 or http://dx.doi.org/10.1111/j.1467-9957.2012.02334.x

Carsten Hefeker (Contact Author)

HWWA Institute of International Economics ( email )

Heimhuder Strasse 71
20347 Hamburg, DE Hamburg 20148
Germany

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Michael Neugart

Technical University of Darmstadt ( email )

Hochschulstra├če 1
Darmstadt, 64289
Germany

HOME PAGE: http://www.vwl3.wi.tu-darmstadt.de

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