The interaction of monetary policy and wage bargaining in the European Monetary Union
Subtitle: lessons from the endogenous money approach
By: Sebastian Dullien.
Publisher: Palgrave Macmillan; Springer
Published: 2004
Place of publication: Houndmills, Basingstoke, Hampshire; New York
Language: eng
Number of pages: 276
Subjects: Economic and Monetary Union.; Unemployment -- European Union countries.; Inflation (Finance) -- European Union countries.; Collective bargaining -- European Union countries.; Wages -- European Union countries.; Monetary policy -- European Union countries.; Banks and banking, Central -- European Union countries.
Description: "Sebastian Dullien gives a explanation for unemployment and inflation in the Euro-Zone. He argues that unemployment stems from a lack of cooperation between unions and monetary authorities. In an economy with endogenous money and monopolistic competition in good markets, the standard economic textbooks' distribution of macroeconomic responsibilities are turned upside down - wage setters are now responsible for price stability while the European Central Bank is responsible for level of output." "Only unions with a small and limited constituency can increase employment by simple wage restraint. However, this is shown to be a beggar-thy-neighbour policy, destroying employment elsewhere. On a European level, only when unions and the central bank cooperate can high employment and low inflation be achieved simultaneously. The institutional set-up with the 1999 Cologne process is found to be unable to assure such a cooperation."--BOOK JACKET.
Notes: Includes bibliographical references (p. 258-269) and index.