Gern, Klaus-Jürgen; Meier, Carsten-Patrick; Scheide, … - 2003
conditions in the euro area, we analyze what could be gained from a combination of wage policy and monetary policy. Using a small … theoretical macroeconomic model, we show that coordination between wage policy and monetary policy can be beneficial under certain … a similar increase in aggregate demand. To prevent an output gap from emerging, the optimal monetary policy is to lower …