We analyze the effects of international integration of product and capital markets (i.e., globalisation) in a world where countries differ in their labour market institutions: one country has a perfectly competitive labour market while the other is unionized. We show that workers should favour...

We analyze how global economic integration of factor markets affects the stability of the macro economy, with respect to expectations-driven fluctuations, when countries differ in their labour market institutions. It is shown that, due to the occurrence of equilibrium indeterminacy,...

We analyze the effects of international integration of product and capital markets (i.e., globalisation) in a world where countries differ in their labour market institutions: one country has a perfectly competitive labour market while the other is unionized. We show that workers should favour...

This paper studies the effects of international integration of capital markets in a world where countries differ in their labor market institutions: one country has a perfectly competitive labor market while the other is unionized. We show that workers should favor autarky in the unionized...