Monetary and Wage Policies in the Euro Area / Edition 1

Monetary and Wage Policies in the Euro Area / Edition 1

by Michael Carlberg
     
 

ISBN-10: 3540369333

ISBN-13: 9783540369332

Pub. Date: 10/09/2006

Publisher: Springer Berlin Heidelberg

This book studies interactions between monetary and wage policies in the Euro area, closely reviewing and discussing the process of policy competition and the structure of policy cooperation. On policy competition, the book focuses on competition between the European central bank, the American central bank, the German labour union, and the French labour union. As

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Overview

This book studies interactions between monetary and wage policies in the Euro area, closely reviewing and discussing the process of policy competition and the structure of policy cooperation. On policy competition, the book focuses 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. Includes numerical simulations and solutions.

Product Details

ISBN-13:
9783540369332
Publisher:
Springer Berlin Heidelberg
Publication date:
10/09/2006
Edition description:
2006
Pages:
309
Product dimensions:
6.10(w) x 9.25(h) x 0.03(d)

Table of Contents


Introduction     1
Subject and Approach     1
Monetary Competition between Europe and America     2
Monetary Cooperation between Europe and America     5
Wage Competition between Germany and France     5
Wage Cooperation between Germany and France     7
Monetary and Wage Competition     8
Monetary and Wage Cooperation     9
Basic Models of a Monetary Union     11
The Small Monetary Union of Two Countries     13
The Model     13
Introduction     13
The Market for German Goods     13
The Market for French Goods     15
The Money Market of the Union     17
Technology and Price Setting     18
The Model     19
The Rate-of-Growth Method     21
Monetary Policy     23
Wage Policy     25
The World as a Whole     27
The Model     27
Monetary Policy     30
Wage Policy     31
The World of Two Monetary Regions     33
The Model     33
Introduction     33
The Market for European Goods     33
The Market for American Goods     35
The European Money Market     36
The American Money Market     37
Technology and Price Setting     37
The Model     39
The Rate-of-Growth Method     41
Monetary Policy     43
Wage Policy     45
Monetary Interactions between Europe and America     49
Monetary Competition between Europe and America     51
The Dynamic Model     51
Some Numerical Examples     59
The Case of Unemployment     60
Europe and America Differ in Unemployment     64
The Case of Inflation     65
Unemployment in Europe, Inflation in America     68
Monetary Cooperation between Europe and America     71
The Model     71
Some Numerical Examples     74
Wage Interactions between Germany and France     81
Competition between the German Labour Union and the French Labour Union     83
The Dynamic Model     83
Some Numerical Examples     91
Unemployment in Germany Equals Unemployment in France     92
Unemployment in Germany Is High, Unemployment in France Is Low     95
Unemployment in Germany, Full Employment in France      97
Unemployment in Germany, Overemployment in France     98
Overemployment in Germany and France     100
Cooperation between the German Labour Union and the French Labour Union     103
The Model     103
Some Numerical Examples     105
Monetary and Wage Interactions: Intermediate Models     113
Competition between European Central Bank, German Labour Union, and French Labour Union     115
The Dynamic Model     115
Some Numerical Examples     117
Unemployment in Europe, Full Employment in America     118
Another Interpretation     120
Overemployment in Europe, Full Employment in America     122
First the Labour Unions Decide, then the Central Bank Decides     126
Cooperation between European Central Bank, German Labour Union, and French Labour Union     130
The Model     130
Some Numerical Examples     132
Unemployment in Europe, Full Employment in America     132
Overemployment in Europe, Full Employment in America     134
Alternative Targets of Policy Cooperation     136
Competition between European Central Bank, American Central Bank, German Labour Union, and French Labour Union     139
The Dynamic Model     139
Some Numerical Examples     141
The Case of Unemployment     142
Europe and America Differ in Unemployment     145
The Case of Overemployment     147
Cooperation between European Central Bank, American Central Bank, German Labour Union, and French Labour Union     150
The Model     150
Some Numerical Examples     153
The Case of Unemployment     153
Europe and America Differ in Unemployment     155
The Case of Overemployment     156
Unemployment in Europe, Overemployment in America     158
Alternative Targets of Policy Cooperation     159
Monetary and Wage Interactions: Advanced Models     163
Simultaneous Decisions: Cold-Turkey Policies     165
Simultaneous Decisions: Gradualist Policies     170
Fast Monetary Competition and Slow Wage Competition     176
Monetary Cooperation between Europe and America, Wage Competition between Germany and France     180
The Model     180
Some Numerical Examples     182
The Case of Unemployment     182
Europe and America Differ in Unemployment     185
The Case of Overemployment     187
Unemployment in Europe, Overemployment in America      189
Monetary Cooperation between Europe and America, Wage Cooperation between Germany and France     192
The Model     192
Some Numerical Examples     194
The Case of Unemployment     195
Europe and America Differ in Unemployment     197
The Case of Overemployment     198
Unemployment in Europe, Overemployment in America     200
Policy Cooperation within Europe, Policy Competition between Europe and America     202
The Model     202
A Numerical Example     204
Rational Policy Expectations     209
Monetary Competition between Europe and America     211
Wage Competition between Germany and France     217
Monetary and Wage Competition: Sequential Decisions     222
Monetary and Wage Competition: Simultaneous Decisions     231
Monetary Cooperation between Europe and America, Wage Competition between Germany and France     233
Policy Cooperation within Europe, Policy Competition between Europe and America     238
Synopsis     245
Conclusion     249
Monetary Competition between Europe and America     249
Monetary Cooperation between Europe and America     254
Wage Competition between Germany and France      257
Wage Cooperation between Germany and France     260
Monetary and Wage Competition     261
Monetary and Wage Cooperation     265
Simultaneous Decisions: Cold-Turkey Policies     267
Simultaneous Decisions: Gradualist Policies     268
Monetary Cooperation and Wage Competition     269
Monetary Cooperation and Wage Cooperation     272
Rational Policy Expectations     274
Result     277
Monetary Competition between Europe and America     277
Monetary Cooperation between Europe and America     279
Wage Competition between Germany and France     280
Wage Cooperation between Germany and France     281
Monetary and Wage Competition     282
Monetary and Wage Cooperation     284
Symbols     285
A Brief Survey of the Literature     287
The Current Research Project     290
References     293
Index     305

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