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Uncertainty, Wage Setting and Decision Making in a Monetary Union

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  • Hefeker, Carsten

Abstract

The enlargement of the European Monetary Union is likely to lead to an increase of uncertainty about the transmission of monetary policy for the larger union. Adding new members to the central bank council will in addition imply that the preferences of the enlarged council will be uncertain in the initial period. The paper considers the influence of both types of uncertainty on wage setting behavior in the larger monetary union and its effects on unemployment. In light of these effects, implications for the adequate structure of the central bank are derived.

Suggested Citation

  • Hefeker, Carsten, 2004. "Uncertainty, Wage Setting and Decision Making in a Monetary Union," Discussion Paper Series 26204, Hamburg Institute of International Economics.
    • Handle: RePEc:ags:hwwadp:26204
    DOI: 10.22004/ag.econ.26204
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    Cited by:

    1. Carsten Hefeker, 2006. "The monetary policy consequences of enlargement," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 7(4), pages 29-34, December.
    2. Gonzales-Eiras, Martín & Niepelt, Dirk, 2004. "Sustaining Social Security," Seminar Papers 731, Stockholm University, Institute for International Economic Studies.
    3. Irena Radović, 2009. "Challenges for Monetary Policy in the Enlarged European Monetary Union," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(1), pages 95-110, March.
    4. Carsten Hefeker, 2006. "The monetary policy consequences of enlargement," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 7(04), pages 29-34, December.

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    More about this item

    Keywords

    Financial Economics; Labor and Human Capital;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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