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Money, Exchange Rat...
Money, Exchange Rates, Wages, and Games
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- Gylfason, Thorvaldur (author)
- Stockholms universitet,Institutet för internationell ekonomi
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- Lindbeck, Assar (author)
- Stockholms universitet,Institutet för internationell ekonomi
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(creator_code:org_t)
- Stockholm : IIES, 1987
- English 32 s.
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Series: Seminar Paper / Institute for International Economic Studies, Stockholm University, 0347-8769 ; 383
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Abstract
Subject headings
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- This paper is focused on the interaction of monetary policy and wage determination in open economies with strong labor unions. Applying some elements of game theory, the paper views both government and labor as endogenous utility maximizers, and studies the macroeconomic consequences af their interaction. In particular, the paper shows (a) how labor unions adjust wages optimally to prices following monetary expansion or devaluation; (b) how the ultimate effectiveness of policy is reduced (without necessarily being destroyed) by optimal union reactions; and (c) how the interplay of government and labor can create a persistent tendency to unemployment and inflation simultaneously.
Subject headings
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Economics (hsv//eng)
Keyword
- Economics
- Nationalekonomi
Publication and Content Type
- vet (subject category)
- rap (subject category)
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