Original scientific paper
https://doi.org/10.1080/1331677X.2016.1211955
Monetary policy and unemployment in Croatia
Manuel Benazić
Jasmin Rami
Abstract
Achieving full employment is one of the most important economic
policy tasks. Economic policy affects employment primarily through
monetary and fiscal policies, which with their instruments affect
aggregate supply and demand for goods and services. The aim of this article is to determine the impact of monetary policy on unemployment in Croatia. For this purpose, the bounds testing (ARDL) approach for cointegration is applied. The results indicate the existence of stable cointegration relationship between the variables and show that Croatian monetary policy is quite limited in reducing unemployment.
Keywords
Monetary policy; unemployment; Croatia; cointegration; ARDL approach
Hrčak ID:
171786
URI
Publication date:
22.12.2016.
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