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Imperfect Competition and the Interaction of Monetary Policy and Wages: An Extension of Gylfason and Lindbeck

Author

Listed:
  • Anindya Sen

    (Indira Gandhi Institute of Development Research)

Abstract

A markup term is introduced to represent imperfect competition in Gylfason and Lindbeck's model of the interaction of monetary policy and wages. The simultaneous persistence of unemployment and inflation remains and these problems are aggravated with imperfect competition. However, the markup term represents an additional instrument in the hands of the government and the union.

Suggested Citation

  • Anindya Sen, 1996. "Imperfect Competition and the Interaction of Monetary Policy and Wages: An Extension of Gylfason and Lindbeck," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 31(2), pages 235-240, July.
  • Handle: RePEc:dse:indecr:v:31:y:1996:i:2:p:235-240
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    More about this item

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

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