EconPapers    
Economics at your fingertips  
 

Wage Setting Under Different Monetary Regimes

Steinar Holden ()

No 632, CESifo Working Paper Series from CESifo Group Munich

Abstract: In an economy with large wage setters (like industry unions), the monetary regime affects the trade-off between consumer real wages and employment and profits faced by the wage setters. This paper shows that an exchange rate target, including participation in a monetary union, is likely to involve lower wages in the traded sector, and higher wages in the non-traded sector, than does a price target. An exchange rate target also involves higher prices on non-traded goods relative to traded goods. Overall welfare is likely to be higher under a price target.

Keywords: wage bargaining; monetary union; inflation target; monetary regime; equilibrium unemployment (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.ifo.de/DocDL/632.PDF (application/pdf)

Related works:
Working Paper: Wage setting under different monetary regimes (1999) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_632

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Group Munich Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

 
Page updated 2020-06-02
Handle: RePEc:ces:ceswps:_632