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Monetary Policy Cooperation May Not Be Counterproductive

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Author Info
Jensen, Henrik

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Abstract

This paper qualifies K. Rogoff's (1985) famous result that international monetary policy cooperation is counterproductive. In a model similar to his, it is shown that if wage-setters are nonatomistic and inflation averse--as policymakers are--cooperation leads to higher employment and possibly lower inflation. Copyright 1997 by The editors of the Scandinavian Journal of Economics.

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Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 99 (1997)
Issue (Month): 1 (March)
Pages: 73-80
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Handle: RePEc:bla:scandj:v:99:y:1997:i:1:p:73-80

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  1. Florin Ovidiu BILBIIE, 2001. "Inflation Contracts, Targets and Strategic Incentives for Delegation in International Monetary Policy Games," Economics Working Papers ECO2001/16, European University Institute. [Downloadable!]
  2. Alex Cukierman & Francesco Lippi, 2000. "Labor Markets and Monetary Union; a Strategic Analysis," Temi di discussione (Economic working papers) 365, Bank of Italy, Economic Research Department. [Downloadable!]
    Other versions:
  3. Alex Cukierman & Alberto Dalmazzo, 2006. "Fiscal-monetary policy interactions in the presence of unionized labor markets," International Tax and Public Finance, Springer, vol. 13(4), pages 411-435, August. [Downloadable!] (restricted)
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  4. Thomas Willett, 1999. "Developments in the Political Economy of Policy Coordination," Open Economies Review, Springer, vol. 10(2), pages 221-253, May. [Downloadable!] (restricted)
  5. Cukierman, A. & Lippi, F., 1998. "Central bank independence, centralization of wage bargaining, inflation and unemployment : theory and some evidence," Discussion Paper 116, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  6. Nicola Acocella & Giovanni Di Bartolomeo, 2002. "Non-neutrality of monetary policy in policy games," Macroeconomics 0207002, EconWPA. [Downloadable!]
    Other versions:
  7. Holden,S., 1999. "Wage setting under different monetary regimes," Memorandum 12/1999, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
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