Wage-setting patterns and monetary policy: International evidence
Systematic differences in the timing of wage-setting decisions among industrialized countries provide an ideal framework to study the importance of wage rigidity for the transmission of monetary policy. Synchronization in wage-setting decisions is prevalent in Japan and the United States, yielding varying degrees of wage rigidity within the year; instead, in France, Germany, and the United Kingdom decisions are more uniformly spread over time. Exploiting within-year variation in the timing of wage-setting decisions in these economies, we find support for the long-held but scarcely tested view that wage rigidity plays a critical role in the transmission of monetary policy.
Year of publication: |
2010
|
---|---|
Authors: | Olivei, Giovanni ; Tenreyro, Silvana |
Published in: |
Journal of Monetary Economics. - Elsevier, ISSN 0304-3932. - Vol. 57.2010, 7, p. 785-802
|
Publisher: |
Elsevier |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
The timing of monetary policy shocks
Olivei, Giovanni, (2006)
-
Wage setting patterns and monetary policy: international evidence
Olivei, Giovanni, (2008)
-
Synchronization in wage setting and the effects of monetary policy
Olivei, Giovanni, (2007)
- More ...