Monetary and Wage Policies in the Euro Area

1. Front Matter

   Pages I-XVI

   PDF

2. Introduction

   1. Introduction

      Pages 1-10

3. Basic Models of a Monetary Union

   1. Front Matter

      Pages 11-11

      PDF

   2. The Small Monetary Union of Two Countries

      Pages 13-26

   3. The World as a Whole

      Pages 27-32

   4. The World of Two Monetary Regions

      Pages 33-47

4. Monetary Interactions between Europe and America

   1. Front Matter

      Pages 49-49

      PDF

   2. Monetary Competition between Europe and America

      Pages 51-70

   3. Monetary Cooperation between Europe and America

      Pages 71-79

5. Wage Interactions between Germany and France

   1. Front Matter

      Pages 81-81

      PDF

   2. Competition between the German Labour Union and the French Labour Union

      Pages 83-102

   3. Cooperation between the German Labour Union and the French Labour Union

      Pages 103-112

6. Monetary and Wage Interactions Intermediate Models

   1. Front Matter

      Pages 113-113

      PDF

   2. Competition between European Central Bank, German Labour Union, and French Labour Union

      Pages 115-129

   3. Cooperation between European Central Bank, German Labour Union, and French Labour Union

      Pages 130-138

   4. Competition between European Central Bank, American Central Bank, German Labour Union, and French Labour Union

      Pages 139-149

   5. Cooperation between European Central Bank, American Central Bank, German Labour Union, and French Labour Union

      Pages 150-161

7. Monetary and Wage Interactions Advanced Models

   1. Front Matter

      Pages 163-163

      PDF

   2. Simultaneous Decisions: Cold-Turkey Policies

      Pages 165-169

   3. Simultaneous Decisions: Gradualist Policies

      Pages 170-175

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.

• Euro
• European Monetary Union
• International Policy Coordination
• Monetary Policy
• Simulation
• Wage Policy

• Helmut Schmidt University, Federal University of Hamburg, Hamburg, Germany

  Michael Carlberg

Policies and ethics