Central Bank Independence, Centralization of Wage Bargaining, Inflation and Unemployment: Theory and Evidence

Alex Cukierman () and Francesco Lippi

Working Papers from Banca Italia - Servizio di Studi

Abstract: This paper proposes a conceptual framework that makes it possible to investigate the effects of central bank independence, the degree of centralization of wage bargaining and the interaction between those institutional variables on the real wage, unemployment and inflation. This is done by considering a two-stage strategic interaction between a central bank (CB) with a given degree of conservativeness and a number of unions each of which sets its own nominal wage taking the nominal wages of other unions and the reaction-function of the CB as given.

Keywords: CENTRAL BANKS; WAGES; BARGAINING; INFLATION; UNEMPLOYMENT (search for similar items in EconPapers)
JEL-codes: E24 E31 E58 (search for similar items in EconPapers)
Date: 1998
View citations in EconPapers

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Central Bank Independence, Centralization of Wage Bargaining, Inflation and Unemployment - Theory and Evidence (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this paper

More papers in Working Papers from Banca Italia - Servizio di Studi
Address: Banca d'Italia-Servizio Studi-Divisione Biblioteca e Pubblicazioni - Via N azionale, 91 -00184 Rome, Italy.
Contact information at EDIRC.
Series data maintained by Thomas Krichel ().