Large labour unions and terms-of-trade externality

Vincenzo Cuciniello

Economics Letters, 2013, vol. 120, issue 1, 135-138

Abstract: This paper shows that large labour unions reduce the incentive for uncoordinated monetary policies to improve the terms of trade. This finding implies that concentrated labour markets significantly affect the optimal policy prescription in an open economy.

Keywords: Open-economy macro; Non-atomistic wage setting; Macroeconomic interdependence; Terms-of-trade externality (search for similar items in EconPapers)
JEL-codes: E42 F41 J5 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:120:y:2013:i:1:p:135-138

DOI: 10.1016/j.econlet.2013.04.019

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