Hitting the right target: an examination of inflation targeting and labour within the varieties of capitalism framework Online publication date: Mon, 26-Dec-2011
by Joseph J. St. Marie
International Journal of Monetary Economics and Finance (IJMEF), Vol. 5, No. 1, 2012
Abstract: This study examines the interaction of state and social institutions, namely labour unions. Examining the type of capitalist structure of the state, one can draw conclusions about institutional arrangements and economic structures. The literature on Varieties of Capitalism (VoC) and inflation targeting are numerous; a synthesis takes into account economic and social structures including interactions with monetary policy. Multivariate models test the assumption of differences between inflation targeters and non-targeters. Models demonstrate state intervention in labour markets and union activities. The study concludes by presenting findings about relationships between the capitalist structure of the state, social institutions and inflation targeting.
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