Monetary policy and wage bargaining in the EMU: restrictive ECB policies, high unemployment, nominal wage restraint and rising inflation

Abstract: "Assessing the effects of monetary policy and wage bargaining on employment and inflation in the European Monetary Union (EMU), in the first step a Post-Keynesian competitive claims model of inflation with endogenous money is developed. In this model the NAIRU is considered to be a short-run limit to employment enforced by independent and conservative central banks. In the long run, however, the NAIRU will follow actual unemployment and is therefore also dependent on the forces determining aggregate demand, including monetary policies. But the NAIRU may also be reduced by effectively co-ordinated wage bargaining as has been shown by institutional political economists. Applying these considerations to the economic performance of the EMU, different scenarios determined by wage bargaining coordination and the European Central Bank's (ECB) monetary policies are developed. It is shown that the first phase of EMU was dominated by uncoordinated wage bargaining across EMU and an "anti-grow

Object Details

• Location: Deutsche Nationalbibliothek Frankfurt am Main
• Extent: Online-Ressource, 32 S.
• Language: Englisch
• Notes: Veröffentlichungsversion

References and Relationships

• Bibliographic citation: WSI-Diskussionspapier ; Bd. 103

Classification and Topics

• Keyword: Geldpolitik ; Tarifverhandlung ; Inflationstheorie ; Keynessche Theorie ; Beschäftigungswirkung ; Theorie ; Eurozone

Contributors, Places and Time

• Event: Veröffentlichung
• (where): Düsseldorf
• (when): 2002
• Creator: Hein, Eckhard
• Contributor: Wirtschafts- und Sozialwissenschaftliches Institut in der Hans-Böckler-Stiftung

Further information

• URN: urn:nbn:de:0168-ssoar-234175
• Rights: Open Access unbekannt; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
• Last update: 15.08.2025, 7:30 AM CEST