Bryson, Jay H.; Chen, Chih-Huan; VanHoose, David D. - Federal Reserve Board (Board of Governors of the … - 1996
This paper shows how economic interdependence affects wage indexation decisions when monetary authorities do not observe stochastic disturbances. Under a managed exchange rate, atomistic wage setters in interdependent nations will choose the same degree of indexation as they would in a small...
