Monetary Union and Pegging in the Presence of Labor Unions

Monetary Union and Pegging in the Presence of Labor Unions
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Book Synopsis Monetary Union and Pegging in the Presence of Labor Unions by : Attila Korpos

Download or read book Monetary Union and Pegging in the Presence of Labor Unions written by Attila Korpos and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the European Economic and Monetary Union grows, power over monetary policy is shifting away from the original founders. Previously, researchers have analyzed the impact of replacing an exchange-rate peg with a monetary union in the presence of labor unions. In these studies, the authors have consistently concluded that unemployment in the country that originally controlled monetary policy will rise, although they cite very different reasons. In this paper, we present a more general model that reproduces the previous results in special cases and clarifies the relations across the results. In addition, the more general model shows that the results are reversed in certain conditions.


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