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Floating Exchange Rates as Employment Protection [PDF]
, 2011 Floating exchange rates allow central banks to respond to aggregate demand fluctuations by changing their interest rates. However, such fluctuations create inertia in the labour market by increasing the cost of hiring and firing workers. A regime of flexible exchange rates can cause rigidities in labour markets similar to those caused by legalised ...
Yu-Fu Chen, Gylfi Zoega
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This report discussies the mechanisms through which exchange rate shocks are transmitted to employment. Industry specific channels highlights important mechanisms through which the impact of exchange rate movements on employment can either be dampened or amplified.openaire +1 more source
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