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Faia, Ester (contributor); Rossi, Lorenza (contributor) - 2008

We study the design of optimal monetary policy (Ramsey policies) in a model with sticky prices and unionized labour markets. Collective wage bargaining and unions monopoly power tend to dampen wage fluctuations and to amplify employment fluctuations relatively to a DNK model with walrasian...

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Union power, collective bargaining, and optimal monetary policy

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