Building on a micro-founded model of a two region-world economy in the tradition of the new open economy literature, this paper analyses the strategic interaction of large wage-setters and the central bank when switching from a regime of uncoordinated national monetary policies to a monetary...

Building on a micro-founded model of a two region-world economy in the tradition of the new open economy literature, this paper analyses the strategic interaction of large wage-setters and the central bank when switching from a regime of uncoordinated national monetary policies to a monetary...

This paper analyses the impact of trade openness on inflation in a strategic framework characterized by monopolistic production in the domestic sector and unionized labour markets. By stressing the interplay between internal and external sources of economic distortion, we show that the economy's...

This paper analyses the impact of trade openness on inflation in a strategic framework characterized by monopolistic production in the domestic sector and unionized labour markets. By stressing the interplay between internal and external sources of economic distortion, we show that the economy's...