The welfare effect of foreign monetary conservatism with non-atomistic wage setters

Vincenzo Cuciniello

No 810, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper extends the closed economy analysis of strategic interaction between labor unions and the monetary authority in Lippi (REStud 2003) to a two-country open economy framework. It sheds light on the real effect of foreign central bank conservatism, which�through a strategic mechanism that operates via the terms of trade between the two independent monetary policy makers�entails wage moderation. The impact of domestic central bank conservatism hinges instead on the combination of three strategic effects.

Keywords: foreign central bank conservatism; centralized wage setting; open-economy macro (search for similar items in EconPapers)
JEL-codes: E58 F41 J51 (search for similar items in EconPapers)
Date: 2011-06
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: The Welfare Effect of Foreign Monetary Conservatism with Nonatomistic Wage Setters (2011)
Journal Article: The Welfare Effect of Foreign Monetary Conservatism with Nonatomistic Wage Setters (2011)
Working Paper: The welfare effect of foreign monetary conservatism with non-atomistic wage setters (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_810_11

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