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Discretionary monetary policy, quantitative easing and the decline in US labor share
Economics and Business Letters
View Archive Info| Field | Value | |
| Title |
Discretionary monetary policy, quantitative easing and the decline in US labor share
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| Creator |
Olson, Eric
Young, Andrew T. |
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| Description |
Labor shares in the US and other OECD countries have been trending downward (OECD (2012); Elsby et al. (2013)). Piketty (2014) has argued that this may be an inevitability of capitalist economies. Others have argued that globalization may be a cause (Harrison (2005); Guscina (2006); Schneider (2011)). We explore the possibility that in the US discretionary monetary expansion has played a role. We estimate the relationship between monetary policy innovations and labor share based using VARs estimated separately for the 1986-2002 (rule-based), 2003-2014 (discretionary), and 2008Q3-2014 (quantitative easing). We report that positive monetary policy innovations are associated with statistically significant, persistent decreases in labor shares in the later (discretionary and quantitative easing) periods.
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| Publisher |
Oviedo University Press
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| Contributor |
—
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| Date |
2015-06-30
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://www.unioviedo.es/reunido/index.php/EBL/article/view/10728
10.17811/ebl.4.2.2015.63-78 |
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| Source |
Economics and Business Letters; Vol 4, No 2 (2015): June; 63-78
Economics and Business Letters; Vol 4, No 2 (2015): June; 63-78 2254-4380 10.17811/ebl.4.2.2015 |
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| Language |
eng
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| Relation |
http://www.unioviedo.es/reunido/index.php/EBL/article/view/10728/10302
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| Rights |
Copyright (c) 2015 Economics and Business Letters
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