The Interaction of Monetary Policy and Wage Bargaining in the European Monetary Union
ISBN: 9780230006140
Platform/Publisher: SpringerLink / Palgrave Macmillan UK
Digital rights: Users: unlimited; Printing: unlimited; Download: unlimited
Subjects: Palgrave Economics & Finance Collection;

Sebastian Dullien gives a novel explanation for unemployment and inflation in the Euro-Zone. He argues that unemployment stems from a lack of co-operation between unions and monetary authorities: In an economy with endogenous money as EMU, wage setters are responsible for price stability while the central bank is responsible for the level of output. Co-operation between both actors is necessary for high employment and low inflation. The current institutional set-up is found to be unable to assure cooperation.

SEBASTIAN DULLIEN is Economics Correspondent at the Financial Times Deutschland, the German language edition of the FT. Previously he worked as a short term expert for the Deutsches Institut für Wirtschaftsforschung. He also teaches at the Freie Universität in Berlin.

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