Erschienen in:Bank of Italy Temi di Discussione (Working Paper) ; No. 810
Umfang:
1 Online-Ressource (27 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.1960503
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 17, 2011 erstellt
Beschreibung:
This paper extends the closed economy analysis of strategic interaction between labor unions and the monetary authority in Lippi (REStud 2003) to a two-country open economy framework. It sheds light on the real effect of foreign central bank conservatism, which — through a strategic mechanism that operates via the terms of trade between the two independent monetary policy makers — entails wage moderation. The impact of domestic central bank conservatism hinges instead on the combination of three strategic effects