Uncertainty, Wage Setting and Decision Making in a Monetary Union

Carsten Hefeker

No 1485, CESifo Working Paper Series from CESifo

Abstract: The enlargement of the European Monetary Union is likely to lead to an increase in uncertainty regarding the transmission of monetary policy for the larger union. Adding new members to the central bank council will in addition imply that the policy reaction of the enlarged council will be uncertain in the initial period. The paper considers the influence of both types of uncertainty on wage-setting behavior in the larger monetary union and its effects on unemployment. In light of these effects, I also derive implications for the adequate structure of the central bank.

Keywords: monetary policy uncertainty; wage setting; European Central Bank; Euro area; accession countries (search for similar items in EconPapers)
JEL-codes: D72 E58 (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-cba, nep-fmk, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Uncertainty, Wage Setting and Decision Making in a Monetary Union (2004)
Working Paper: Uncertainty, Wage Setting and Decision Making in a Monetary Union (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1485

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