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This paper examines the effect of monopolistic labour unions' behavior on governments' incentives to undertake labour market reform, inside and outside a symmetric and an asymmetric monetary union (MU). Incentives for reform are increased inside the MU when governments and labour unions move...
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, and price and wage rigidities. Regulation affects producer entry costs, employment protection, and unemployment benefits …. We first characterize optimal monetary policy when regulation is high in both countries and show that the Ramsey …
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, and price and wage rigidities. Regulation affects producer entry costs, employment protection, and unemployment benefits …. We first characterize optimal monetary policy when regulation is high in both countries and show that the Ramsey …
Persistent link: https://www.econbiz.de/10012459637