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Non-neutrality of monetary policy in policy games

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  • Acocella, Nicola
  • Di Bartolomeo, Giovanni

Abstract

The main aim of this article is to investigate the sources of non- neutrality in policy games involving one or more trade unions. We use a simple set up in order to clearly expose the basic mechanisms that also work in more complex frameworks. We show that there are common roots in the nonneutrality results so far obtained in apparently different contexts as, e.g., an inflation-averse union playing against the government; a union sharing some other common objective with a policy maker; or when more than one union interacts with monopolistic competitors in the goods market and a policymaker. We finally show that there are other cases where the nonneutrality result can arise.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 20 (2004)
Issue (Month): 3 (September)
Pages: 695-707

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Handle: RePEc:eee:poleco:v:20:y:2004:i:3:p:695-707

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Web page: http://www.elsevier.com/locate/inca/505544

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References

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  14. Nicola Acocella & Giovanni Di Bartolomeo, 2003. "Wage and Public Expenditure Setting in a Monetary Union," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 6(1-2), pages 1-16, May - Nov.
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