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Non-Neutrality Of Monetary Policy In Policy Games

Author

Listed:
  • Giovanni Di Bartolomeo

    (UNIVERSITÀ DEGLI STUDI DI ROMA “LA SAPIENZA”)

  • Nicola Acocella

    (UNIVERSITÀ DEGLI STUDI DI ROMA “LA SAPIENZA”)

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.

Suggested Citation

  • Giovanni Di Bartolomeo & Nicola Acocella, 2005. "Non-Neutrality Of Monetary Policy In Policy Games," Macroeconomics 0504026, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0504026
    Note: Type of Document - pdf; pages: 29
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    References listed on IDEAS

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    More about this item

    Keywords

    neutrality; money; unions; policy game.;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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