Inflation Uncertainty, Unemployment Uncertainty and Economic Activity

Posted: 17 Dec 1999

See all articles by Marc D. Hayford

Marc D. Hayford

Loyola University of Chicago - Department of Economics

Abstract

This paper shows that Livingston Survey measures of unemployment uncertainty are positively correlated with inflation, that inflation Granger Causes unemployment uncertainty and that shocks to inflation uncertainty or unemployment uncertainty have similar effects on real GDP growth. This suggests higher unemployment uncertainty is a cost of higher inflation that may deserve equal billing with inflation uncertainty.

JEL Classification: E20, E24, E31

Suggested Citation

Hayford, Marc D., Inflation Uncertainty, Unemployment Uncertainty and Economic Activity. Journal of Macroeconomics, Vol. 22, No. 2, Spring 2000. Available at SSRN: https://ssrn.com/abstract=192191

Marc D. Hayford (Contact Author)

Loyola University of Chicago - Department of Economics ( email )

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