wages and employment faced by the unions. Consequently, the equilibrium employment is endogenous and depends on the monetary … regime. In particular, a switch from a floating exchange rate regime to a monetary union improves employment, provided that … the degree of central bank conservatism is sufficiently high, whereas with low degrees of conservatism employment falls …

wages and employment faced by the unions. Consequently, the equilibrium employment is endogenous and depends on the monetary … regime. In particular, a switch from a floating exchange rate regime to a monetary union improves employment, provided that … the degree of central bank conservatism is sufficiently high, whereas with low degrees of conservatism employment falls …

The likely impact of the EMU on the variability and level of employment is analysed. The major conclusions are: (1 …