We would like to thank Helge Berger, Bernd Hayo, Niklas Potrafke and an anonymous referee for their suggestions.
The Influence of Central Bank Transparency on Labor Market Regulation
Version of Record online: 1 NOV 2012
© 2012 The Authors. The Manchester School © 2012 The University of Manchester and John Wiley & Sons Ltd
The Manchester School
Volume 82, Issue 1, pages 17–32, January 2014
How to Cite
Hefeker, C. and Neugart, M. (2014), The Influence of Central Bank Transparency on Labor Market Regulation. The Manchester School, 82: 17–32. doi: 10.1111/j.1467-9957.2012.02334.x
- Issue online: 17 DEC 2013
- Version of Record online: 1 NOV 2012
- Manuscript Revised: 31 JUL 2012
- Manuscript Received: 18 OCT 2011
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.