Full Description
This book studies the interactions between monetary and wage pohcies in the euro area. It carefully discusses the process of policy competition and the structure of policy cooperation. As to policy competition, the focus is on competition between the European central bank, the American central bank, the German labour union, and the French labour union. As to policy cooperation, the focus is on the same institutions. These are higher-dimensional issues. The policy targets are price stability and full employment. The policy makers follow co- turkey or gradualist strategies. The policy decisions are taken sequentially or simultaneously. Monetary and wage policies have spillover effects. Special features of this book are numerical simulations of policy competition and numerical solutions to policy cooperation. The present book is part of a larger research project on European Monetary Union, see the references at the back of the book. Some parts of this project were presented at the World Congress of the International Economic Association, at the International Conference on Macroeconomic Analysis, at the International Institute of Public Finance, and at the International Atlantic Economic Conference. Other parts were presented at the Macro Study Group of the German Economic Association, at the Annual Meeting of the Austrian Economic Association, at the Gottingen Workshop on International Economics, at the Halle Workshop on Monetary Economics, at the Research Seminar on Macro economics in Freiburg, and at the Passau Workshop on International Economics.
Contents
Basic Models of a Monetary Union.- The Small Monetary Union of Two Countries.- The World as a Whole.- The World of Two Monetary Regions.- Monetary Interactions between Europe and America.- Monetary Competition between Europe and America.- Monetary Cooperation between Europe and America.- Wage Interactions between Germany and France.- Competition between the German Labour Union and the French Labour Union.- Cooperation between the German Labour Union and the French Labour Union.- Monetary and Wage Interactions Intermediate Models.- Competition between European Central Bank, German Labour Union, and French Labour Union.- Cooperation between European Central Bank, German Labour Union, and French Labour Union.- Competition between European Central Bank, American Central Bank, German Labour Union, and French Labour Union.- Cooperation between European Central Bank, American Central Bank, German Labour Union, and French Labour Union.- Monetary and Wage Interactions Advanced Models.- Simultaneous Decisions: Cold-Turkey Policies.- Simultaneous Decisions: Gradualist Policies.- Fast Monetary Competition and Slow Wage Competition.- Monetary Cooperation between Europe and America, Wage Competition between Germany and France.- Monetary Cooperation between Europe and America, Wage Cooperation between Germany and France.- Policy Cooperation within Europe, Policy Competition between Europe and America.- Rational Policy Expectations.- Monetary Competition between Europe and America.- Wage Competition between Germany and France.- Monetary and Wage Competition: Sequential Decisions.- Monetary and Wage Competition: Simultaneous Decisions.- Monetary Cooperation between Europe and America, Wage Competition between Germany and France.- Policy Cooperation within Europe, Policy Competition between Europe and America.
