A Policy for Wages

Wages, Flexible Exchange Rates, and Macroeconomic Policy*

In an open economy with a floaLing exchange rate, the efficacy of fiscal and monetary policy depends fundamentally on the wage-setting pnxiess. In the canonical models of Mundell and Fleming, monetary expansion raises output via an exchange rate depreciation, while fiscal expansion has no output effect. These results hold only when real wages can be altered by exchange rate movements; if the re...

Employment, Wages and Optimal Monetary Policy

We study optimal monetary policy when the empirical evidence leaves the policymaker uncertain whether the true data-generating process is given by a model with sticky wages or a model with search and matching frictions in the labor market. Unless the policymaker is almost certain about the search and matching model being the correct data-generating process, the policymaker chooses to stabilize ...

Testing For Efficiency Wages In Iran

A model with policy network approach for entrepreneurship policy making

One policy making issue that needs to be addressed more effectively through an intergovernmental and participatory approach is entrepreneurship policy. Entrepreneurship is an area where interdependencies are very high, and the establishment of collaborative relationships such as networks is vital. Therefore, a network approach in the entrepreneurial policy-making process, which leads to the inv...

Reviews Minimum Wages and Poverty: An Evaluation of Policy

One of the problems with the economic analysis of social policy is the tendency of researchers to consider policies in isolation from one another. Although Econlit contains over 2000 articles and books on minimum wages, and over 150 on Earned Income Tax Credits (EITCs), only 20 articles or books deal with the two topics together. Although this ‘silo’ approach encourages in-depth analysis of ind...