Lai, Ching-Chong; Chang, Juin-Jen; Chang, Wen-Ya - In: The Economic Record 72 (1996) 219, pp. 313-18
This paper proposes a new route, namely efficient bargains between the union and the firm over wage and employment, to shed light on the contractionary effects of a currency devaluation. It is found that a currency devaluation will definitely depress the supply of domestic goods when the union...