The Interaction of Monetary Policy and Wage Bargaining in by Sebastian Dullien (auth.)

By Sebastian Dullien (auth.)

Show description

Read Online or Download The Interaction of Monetary Policy and Wage Bargaining in the European Monetary Union: Lessons from the Endogenous Money Approach PDF

Similar macroeconomics books

Currency competition and foreign exchange markets

Forex pageant and foreign currency echange Markets is an important new theoretical and empirical research of foreign currencies that makes a speciality of the function the Euro (the destiny eu forex) will play within the overseas financial and monetary procedure, in addition to the U.S. buck and the japanese yen. unlike a lot of the prevailing literature that techniques the topic from a macroeconomic standpoint, Philipp Hartmann develops a theoretical version that makes use of online game idea, time sequence and panel econometrics, and hyperlinks monetary markets research with transaction fee economics.

Money, Crises, and Transition: Essays in Honor of Guillermo A. Calvo

Essays via popular students and policymakers honor the most influential macroeconomists of the final thirty years, discussing the topics at the back of his paintings.

Market Socialism or the Restoration of Capitalism? (International Council for Central and East European Studies)

The cave in of communism in jap Europe has raised a couple of questions in regards to the destiny process their economies. Has capitalism received or is whatever assorted rising? Has marketplace socialism vanished for strong? How can the transitionary interval be controlled and what influence will it have at the way of life in jap Europe?

Handbook of Tourism Economics: Analysis, New Applications and Case Studies

Guide of Tourism Economics: research, New functions and Case reviews presents an up to date, concise and readable assurance of an important subject matters in tourism economics. It can pay consciousness to appropriate conventional themes in tourism economics in addition to intriguing rising issues during this box -- themes that are anticipated to be of constant significance.

Additional info for The Interaction of Monetary Policy and Wage Bargaining in the European Monetary Union: Lessons from the Endogenous Money Approach

Sample text

This has certainly not been the typical situation even in the Scandinavian countries, and is, of course, even less plausible in a situation with independent central banks, focusing on price stability as their prime objective. This does not mean that unions do not care about inflation, but it seems to be more plausible that they have lexicographic preferences for low inflation – that is, preferring low inflation to high inflation, but only after their optimum solutions for unemployment and real wages have been found.

112). Not only was the scala mobile abandoned, but clear rules for wage bargaining were also established. In addition, a regular, bi-annual meeting between unions, employers and the government was established. This new setup made it possible for Italy to devalue sharply in 1992, when it dropped out of the EMS33 without reigniting a wage–price spiral. In the years to come, wage demands were low enough to keep Italy’s unit labour costs from rising again. 12 Italy: development of unit labour costs (ECU) relative to the EU-11, 1980–2002 Source: European Commission (2002).

In the new literature on the interaction of wage bargaining and monetary policy which builds on Barro–Gordon, the basic setup remains intact. In a first stage, unions with some monopoly power (depending on the substitutability between different types of labour and on the numbers of unions in the economy) choose their nominal wage demand. In a second stage, the central bank sets the rate of inflation at a level which maximises the bank’s utility. Together with the nominal wage, this rate of inflation determines the real wage, which in turn determines output and employment in the economy.

Download PDF sample

Rated 4.46 of 5 – based on 24 votes