IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/903.html
   My bibliography  Save this paper

Labour Market Structure, Conservative Bankers and the Feasibility of Monetary Union

Author

Listed:
  • Levine, Paul L
  • Pearlman, Joseph

Abstract

This paper examines the conduct of monetary policy in an economy with overlapping multi-period nominal wage contracts. We examine the welfare implications of stabilization policy in the face of random supply shocks. In the absence of precommitment, the discretionary policy can be improved by choosing bankers who are more conservative than the `median voter' in that they attach a higher priority to achieving low inflation than higher output. The choice of an optimal banker depends on the degree of nominal and real wage rigidities and the presence of the latter can improve the feasibility of a monetary union.

Suggested Citation

  • Levine, Paul L & Pearlman, Joseph, 1994. "Labour Market Structure, Conservative Bankers and the Feasibility of Monetary Union," CEPR Discussion Papers 903, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:903
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=903
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ben Lockwood & Marcus Miller & Lei Zhang, 1998. "Designing Monetary Policy when Unemployment Persists," Economica, London School of Economics and Political Science, vol. 65(259), pages 327-345, August.
    2. Patrick Artus, 1995. "Effets internes et internationaux de l'indépendance des banques centrales," Revue Économique, Programme National Persée, vol. 46(3), pages 857-867.
    3. Lockwood, Ben & Miller, Marcus & Zhang, Lei, 1998. "Designing Monetary Policy When Unemployment Persists," Economica, London School of Economics and Political Science, vol. 65(259), pages 327-345, August.
    4. Olga Arratibel & Jonathan P. Thomas, 2001. "The consequences of staggered wage setting for the credibility of monetary policy," Macroeconomics 0103002, University Library of Munich, Germany.

    More about this item

    Keywords

    Conservative Bankers; European Central Bank; Labour Market Structure;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:903. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.