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Monetary Policy Games and International Migration in a Small Open Economy

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  • George M. Agiomirgianakis

Abstract

The paper shows that international migration may improve the position of both policymakers and unions in small open economies irrespective of whether they cooperate or not. This result implies that both unions and policymakers in small open economies may welcome a further increase in international labor flow in the future. When allowance is made for real GDP per capital considerations on behalf of the policymaker, it is found that aggressive union behavior may increase the inflationary bias. Aggressive unions may insulate themselves, while soft unions lose. The presence of migration does not necessarily lead to a better outcome.

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  • George M. Agiomirgianakis, 2000. "Monetary Policy Games and International Migration in a Small Open Economy," Review of International Economics, Wiley Blackwell, vol. 8(4), pages 698-711, November.
    • Handle: RePEc:bla:reviec:v:8:y:2000:i:4:p:698-711
    DOI: 10.1111/1467-9396.00251
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    Cited by:

    1. Shimada, Akira, 2005. "Foreign worker participation in labor markets and the economy's welfare," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 355-362, April.

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