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Non-Neutrality Of Monetary Policy In Policy Games

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  • 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.

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File URL: http://128.118.178.162/eps/mac/papers/0504/0504026.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Macroeconomics with number 0504026.

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Length: 29 pages
Date of creation: 16 Apr 2005
Date of revision:
Handle: RePEc:wpa:wuwpma:0504026

Note: Type of Document - pdf; pages: 29
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Web page: http://128.118.178.162

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Keywords: neutrality; money; unions; policy game.;

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  14. Cukierman, Alex & Lippi, Francesco, 1999. "Central bank independence, centralization of wage bargaining, inflation and unemployment:: Theory and some evidence," European Economic Review, Elsevier, vol. 43(7), pages 1395-1434, June.
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  22. Acocella, Nicola & Ciccarone, Giuseppe, 1997. " Trade Unions, Nonneutrality and Stagflation," Public Choice, Springer, vol. 91(2), pages 161-78, April.
  23. Nicola Acocella & Giovanni Di Bartolomeo & Douglas A. Jr. Hibbs, 2003. "Labor market regimes and monetary policy," Macroeconomics 0307012, EconWPA.
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