Large labour unions and terms-of-trade externality

This paper shows that large labour unions reduce the incentive for uncoordinated monetary policies to improve the terms of trade. This finding implies that concentrated labour markets significantly affect the optimal policy prescription in an open economy.

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Year of publication:	2013
Authors:	Cuciniello, Vincenzo
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 120.2013, 1, p. 135-138
Publisher:	Elsevier
Subject:	Open-economy macro \| Non-atomistic wage setting \| Macroeconomic interdependence \| Terms-of-trade externality

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Type of publication:	Article
Classification:	E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System ; F41 - Open Economy Macroeconomics ; J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010665694