The paper examines the implications of strategic wage-setting behaviour by an inflation-averse monopoly union for the appropriate specification of central bank objectives. Our principal findings are as follows. First, the optimal setting of the parameters of the central bank's objective function...

This important collection presents an authoritative selection of papers on "Institutional Conflicts and Complementarities" This publication is intent on building bridges between economics and the other social sciences. The focus is on the interaction between monetary policy and wage bargaining...