Impacts of international credit crunch on labor market and price in emerging economies

2018 Fiscal Year Final Research Report

• Project/Area Number: 15K17093
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Money/ Finance
• Research Institution: Chuo University
• Principal Investigator: NAKAMURA CHIKAFUMI 中央大学, 総合政策学部, 准教授 (70612571)
• Project Period (FY): 2015-04-01 – 2019-03-31
• Keywords: 国際信用収縮 / 国際金融

Outline of Final Research Achievements

This research analyzes impacts of fluctuations in international capital flows on emerging economies, especially labor market via changes of terms of trade. Our results suggest that in the case of low exchange rate pass-through, a temporal shock in the international financial market causes a persistently high unemployment rate due to gradually adjusted real wages. It implies that authorities in emerging economies must also consider the exchange rate pass-through rate in addition to domestic labor market frictions to stabilize macroeconomic volatility.

Free Research Field

国際マクロ経済学

Academic Significance and Societal Importance of the Research Achievements

本研究の主たる貢献は、国際金融市場における資金フローの変化が、新興国経済の労働市場に対してどのような影響を及ぼすかを定量的に分析したことにある。これは国際金融の分野では殆ど議論されてこなかったテーマであり、昨今の先進国における金融危機が新興国経済の労働市場に長く深刻な影響を与えてしまう仕組みに対する理解と、それに対する政策的な対処を与えるものである。