Economic Policy in a Monetary Union / Edition 1

The book explores the scope and limits of macroeconomic policy in a mo netary union. The focus is on pure policies, policy mixes, and policy coordination. The leading protagonists are the union central bank, nat ional governments, and national trade unions. Special emphasis is put on wage shocks and wage restraint. The book develops a series of basic , intermediate, and advanced models. The monetary union is an open eco nomy with high capital mobility. The exchange rate between the monetar y union and the rest of the world is floating. The world interest rate can be exogenous or endogenous. The union countries may differ in mon ey demand, consumption, imports, openness, or size. A striking feature is the numerical estimation of policy multipliers. A number of diagra ms serve to illustrate the subject in hand.