|
|
|
|
||||
|
||||
Labor Market Regimes and the Effects of Monetary PolicyDouglas A. Hibbs Jr.Göteborg University - Center for Public Sector Research (CEFOS) Nicola AcocellaUniversity of Rome I - Department of Public Economics Giovanni Di BartolomeoUniversity of Teramo August 11, 2004 Journal of Macroeconomics, Vol. 30, pp. 134-156, 2008 Abstract: In this paper we use a standard multi-union, monopolistic competition model to investigate the qualitative and quantitative responses of inflation and unemployment to monetary policy activism under different institutional arrangements in the labor market, which are defined by the rigidity of nominal wages. We show that the effects of monetary policy on the real economy depend critically on the wage formation regime, and on the ways in which the restrictiveness of policy interacts with product price competition, with union centralization, and with the weight placed on real wages as compared to unemployment in unions' optimal programs. Our interpretation of the results emphasizes how the posture of monetary policy toward inflation influences the strategic calculations that drive union wage setting behavior in different institutional settings.
Number of Pages in PDF File: 30 Keywords: Policy games, monetary policy neutrality, trade unions, monopolistic competition, labor markets JEL Classification: E52, E58, J51 Accepted Paper SeriesDate posted: November 18, 2008 ; Last revised: October 13, 2010Suggested CitationContact Information
|
|
|||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo5 in 1.172 seconds
