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Unemployment and Inflation in the Federal Republic of Germany between 1960 and 1997

Version
1.0.0
Resource Type
Dataset
Creator
  • Kromphardt, Jürgen
Publication Date
2006
Language
German
Classification
  • ZA:
    • Historical Studies Data
Description
  • Abstract

    The Question “Why unemployment?” is one of the most central topics of economic theory since the great depression. Unemployment remains one of the most important problems of economic policies in industrial countries. Unemployment has different causes and therefore also different countermeasures are required. “Together with the destruction of environment unemployment and inflation are in the focus of economic and political discussions on macroeconomic problems and are considered as the greatest challenges of economic policy. Depending on the level of unemployment there is a higher focus on inflation or on unemployment, if both are on an alarming level at the same time they are in the shot simultaneously. In anyway both issues need to be analyzed together because they are not independent from each other. Experiences from the recent years have shown that combating inflation leads to an increase in unemployment, at least temporarily but probably also permanently. The other way around; combating unemployment may under certain circumstances also lead to an increase in inflation… Unemployment and inflation are macroeconomic problems. The level of both undesirable developments is determined by the relations in the entire economy. Therefor it is necessary to use macroeconomic theory which deals the general economic context for the analysis. Both problems are enhanced by structural factors which also need to be analyzed. In contrast to microeconomic theory which focuses on different individual decision makers, in macroeconomic theory decision makers and decisions are summarized in macroeconomic aggregates. The common procedure is to summarize decision makers into aggregates like “private households”, “enterprises” and “the state” and the decision makers concerning the use of income into “private consumption”, “investments” and “public expenditure” (Kromphardt, Jürgen, 1998: Arbeitslosigkeit und Inflation (unemployment and inflation). 2., newly revised A. Göttingen: Vandenhoeck & Ruprecht, p. 17-18). Macroeconomic approaches on the explanation of unemployment and inflation are highly controversial in economic theory. Therefore the author starts with the attempt to present different explanations for unemployment and inflation from different macroeconomic positions. There are different unemployment: classical unemployment (reason: real wages to high), Keynesian unemployment (reason: demand for goods to low), unemployment due to a lack of working places (reason: capital stock to low). These positions give conflicting explanations and recommendations because they are based on different perceptions of the starting position. Therefor the author confronts central positions with empirical data on the macro level with the following restriction: “It is impossible to prove theories as correct (to verify). This is a reason for the fact that macroeconomic controversies do not come to a conclusion but are continued in a modified way. Furthermore economic statements in this field always affect social and political interests as all economic policies favor or put as a disadvantage interests of distinct social groups in a different way.“ (Kromphardt, a.a.O., S. 20). Data tables in HISTAT (1) Development of employment: Presented by the development of annual average unemployment rates and the balance of labor force of the institute for labor market and occupation research (IAB, Nuremberg) after the domestic concept(employment with Germany as the place of work) For characterizing the overall economic developments, those values are used which play an important role in the reports of the German central bank: (2) Inflation: Rate of differences in the price index for costs of living compared to the previous year (3) Currency reserves of German federal banks and the German central bank: measure for foreign economic situation and the payment balance of the central bank (4) Development of economic growth: Presented by the nominal and real growth rate of the GDP (5) Inflation rate of the GDP, money supply, growth rate of the price index of the GDP (6) Labor productivity (= GDP per employee, domestic concept) (7) Real wage per employee (8) Exchange rate: DM/$ (monthly averages) (9) Growth of DGP, productivity, economically active population, real incomes, unemployment rate and adjusted wages (10) Time series connected with labor demand (11) GDP, labor volume, employees, working hours and labor productivity (12) Employee compensation, wages and salaries (domestics), costs of labor, earnings, unit labor costs and wage ratio (13) Real earnings in the producing sector R
Temporal Coverage
  • 1960 / 1997
Geographic Coverage
  • Germany (DE)
Collection Mode
  • Types of sources: Bundesanstalt für Arbeit (Federal Labor Office) (ed.): Amtliche Nachrichten der Bundesanstalt für Arbeit (ANBA) (Official information of the Federal labor office). Märzhefte 1986 und 1989; Heft 4 (1990). Bundesanstalt für Arbeit (Federal Labor Office) (ed.): Sondernummer der Amtlichen Nachrichten der Bundesanstalt für Arbeit: Arbeitsstatistik 1970 – Jahreszahlen (special edition of the official information of the Federal Labor Office: labor statistics 1970 – annual data). Nurnberg. Bundesanstalt für Arbeit (Federal Labor Office) (ed.): Sondernummer der Amtlichen Nachrichten der Bundesanstalt für Arbeit: Arbeitsstatistik 1980 – Jahreszahlen (special edition of the official information of the Federal Labor Office: labor statistics 1980 – annual data). Nurnberg. Bundesanstalt für Arbeit (Federal Labor Office) (ed.): Sondernummer der Amtlichen Nachrichten der Bundesanstalt für Arbeit: Arbeitsstatistik 1990 – Jahreszahlen (special edition of the official information of the Federal Labor Office: labor statistics 1990 – annual data). Nurnberg. Bundesanstalt für Arbeit (Federal Labor Office) (ed.): Sondernummer der Amtlichen Nachrichten der Bundesanstalt für Arbeit: Arbeitsstatistik 1998 – Jahreszahlen (special edition of the official information of the Federal Labor Office: labor statistics 1998 – annual data). Nurnberg. Institut für Arbeitsmarkt- und Berufsforschung ( institute for labor market and occupation research) (ed.): Zahlen-Fibel. Ergebnisse der Arbeitsmarkt- und Berufsforschung in Tabellen. Ausgabe 1988, 1992, 1997. (Results of labor market and occupation research in tables, editions 1988, 1992 and 1997).Nurnberg. Richter, R., 1999: Deutsche Geldpolitik 1948 – 1998 (German monetary policy). Tübingen: J.C.B. Mohr. SVR, Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung (council of experts for the assessment of the overall economic development) (ed.), 1985, 1998: Jahresgutachten (annual experts reports) 1985/86, 1998/99. Stuttgart: Metzler-Poeschel. Federal Statistical Office, Wiesbaden (ed.), different years: statistical yearbook of the Federal Republic of Germany, 1960 to 1998. Stuttgart/Mainz: Kohlhammer bzw. Stuttgart: Metzler-Poeschel.
Data and File Information
  • Unit Type: Text Unit
    Number of Units: 38
    Number of Variables: 210
Availability
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Rights
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Alternative Identifiers
  • ZA8199 (Type: ZA-No.)
Publications
  • Kromphardt, Jürgen: Arbeitslosigkeit und Inflation. 2., neu bearbeitete Auflage. Göttingen: Vandenhoeck & Ruprecht 1998.

Update Metadata: 2017-12-29 | Issue Number: 73 | Registration Date: 2010-07-23

Kromphardt, Jürgen (2006): Arbeitslosigkeit und Inflation in der Bundesrepublik Deutschland, 1960 – 1997. Version: 1.0.0. GESIS Datenarchiv. Dataset. https://doi.org/10.4232/1.8199