Imperfect Competition and the Interaction of Monetary Policy and Wages: An Extension of Gylfason and Lindbeck

A markup term is introduced to represent imperfect competition in Gylfason and Lindbeck's model of the interaction of monetary policy and wages. The simultaneous persistence of unemployment and inflation remains and these problems are aggravated with imperfect competition. However, the markup term represents an additional instrument in the hands of the government and the union.

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Year of publication:	1996
Authors:	Sen, Anindya
Published in:	Indian Economic Review. - Department of Economics. - Vol. 31.1996, July, 2, p. 235-240
Publisher:	Department of Economics

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Type of publication:	Article
Classification:	E52 - Monetary Policy (Targets, Instruments, and Effects) ; E64 - Incomes Policy; Price Policy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005824091