Strategic Interactions of Monetary Policymakers and Wage/Price Bargainers: A Review with Implications for the European Common-Currency Area

Chapter X STRATEGIC INTERACTIONS OF THE ECB, WAGE BARGAINERS, AND GOVERNMENTS A Review of Theory, Evidence, and Recent Experience

Recent studies of macroeconomic management under varying organization of wage/price bargaining and varying degrees of credible monetary conservatism synthesize and extend theory and empirics on central bank independence (CBI) and coordinated wage/price bargaining (CWB). These studies find that the degrees of CBI and CWB interact with each other and with the broader political-economic context (i...

Credibly Conservative Monetary Policy and Wage/Price-Bargaining Organization: A Review with Implications for Monetary Policy in the European Common Currency Area

This paper reviews recent work on macroeconomic management with varying wage/pricebargaining organizational structures and degrees of credible commitment to monetary conservatism. The emerging literature synthesizes and extends theory and empirics on central bank independence (CBI) and coordinated wage/price bargaining (CWB), arguing that the degrees of CBI and CWB interact, with each other and...

The Euro: The Nominal (Inflation) and Real (Output, Employment) Consequences of Pitting a Single European Monetary Authority Against Multiple European Wage Bargainers

ECB Monthly Bulletin, February 2009, Article: New survey evidence on wage setting in Europe

A proper understanding of the patterns, sources and implications of wage and labour cost dynamics is an essential requirement for the effective conduct of monetary policy. Wage costs are an important determinant of prices. The fi ndings of the Infl ation Persistence Network (IPN), a Eurosystem research network analysing the features and determinants of price setting in the euro area, suggest th...

Credibly Conservative Monetary Policy and Labor-/Goods-Market Organization: A Review with Implications for ECB-Led Monetary Policy in Europe

Abstract: This chapter reviews recent work on political-economic management of monetary policy under varying institutional organization of labor/goods markets and varying degrees of credible conservatism in monetary policy. The emerging literature synthesizes and extends theoretical and empirical insights of previous work on central bank independence (CBI) and coordinated wage/price bargaining ...