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Labor Markets and Monetary Union: a Strategic Analysis

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  • Cukierman, A.
  • Lippi, F.

Abstract

This paper analyzes the macroeconomic consequences of the establishment of a monetary union in the presence of unionized labor markets. It is shown that the effects of the formation of a monetary union depend on several labor market festures, such as the degree of centralization of wage bargaining, labor unions' inflation aversion and the degree of substituability between the labor of different unions.

Suggested Citation

  • Cukierman, A. & Lippi, F., 2000. "Labor Markets and Monetary Union: a Strategic Analysis," Papers 365, Banca Italia - Servizio di Studi.
    • Handle: RePEc:fth:banita:365
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    References listed on IDEAS

    as
    1. Barro, Robert J & Gordon, David B, 1983. "A Positive Theory of Monetary Policy in a Natural Rate Model," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 589-610, August.
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    8. Henrik Jensen, 1997. "Monetary Policy Cooperation May Not Be Counterproductive," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 73-80, March.
    9. Skott, Peter, 1997. "Stagflationary Consequences of Prudent Monetary Policy in a Unionized Economy," Oxford Economic Papers, Oxford University Press, vol. 49(4), pages 609-622, October.
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    More about this item

    Keywords

    LABOUR MARKET ; MONETARY UNION ; MACROECONOMICS;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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