Uncertainty, Wage Setting and Decision Making in a Monetary Union
AbstractThe enlargement of the European Monetary Union is likely to lead to an increase in uncertainty regarding the transmission of monetary policy for the larger union. Adding new members to the central bank council will in addition imply that the policy reaction 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, I also derive implications for the adequate structure of the central bank.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1485.
Date of creation: 2005
Date of revision:
monetary policy uncertainty; wage setting; European Central Bank; Euro area; accession countries;
Other versions of this item:
- Hefeker, Carsten, 2004. "Uncertainty, Wage Setting and Decision Making in a Monetary Union," HWWA Discussion Papers 272, Hamburg Institute of International Economics (HWWA).
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-08-13 (All new papers)
- NEP-CBA-2005-08-13 (Central Banking)
- NEP-FMK-2005-08-13 (Financial Markets)
- NEP-MAC-2005-08-13 (Macroeconomics)
- NEP-MON-2005-08-13 (Monetary Economics)
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