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Monetary institutions, imperfect competition and employment outcomes

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  • Chouliarakis, George
  • Correa-López, Mónica
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    Abstract

    Abstract This paper explores the employment effects of strategic interactions between firms, trade unions and monetary institutions in the context of an imperfectly competitive macroeconomic model with right-to-manage bargaining. The results suggest that the employment effect of joining a monetary union is conditional upon the degree of monetary accommodation of the union-wide central bank, the degree of product market competition, and the relative bargaining power in wage-setting. In addition, the employment effect of a change in the degree of monetary accommodation of the domestic or the union-wide central bank is conditional upon the degree of product market competition and the distribution of bargaining power.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1062940811000027
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    Article provided by Elsevier in its journal The North American Journal of Economics and Finance.

    Volume (Year): 22 (2011)
    Issue (Month): 2 (August)
    Pages: 131-148

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    Handle: RePEc:eee:ecofin:v:22:y:2011:i:2:p:131-148
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620163

    Keywords: Monetary union Monetary policy Oligopoly Wage bargaining Employment;

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