Titlebook: Economic Policy in a Monetary Union; Michael Carlberg Book 2000 Springer-Verlag Berlin Heidelberg 2000 Fiskalpolitik.Geldpolitik.Policy Mi

glacial

Wage Shocks an intermediate analysis of the small country in the large monetary union, say the Netherlands. In this section we assume markup pricing. That is, an increase in Dutch money wages causes a proportionate increase in the price of Dutch goods. Now imagine a 1 percent increase in Dutch money wages. Then what will be the effect on Dutch output?

手銬

The Small Union of Two Countriesn, the world interest rate is given exogenously r* = const. Under perfect capital mobility, the union interest rate equals the world interest rate r = r *. Therefore, the union interest rate is constant, too. The exchange rate between the monetary union and the rest of the world is flexible.

ironic

忍耐

Licentious

豐滿中國

傀儡

洞穴

Offset

Zusammenfassung und Schlussfolgerung,n, the world interest rate is given exogenously r* = const. Under perfect capital mobility, the union interest rate equals the world interest rate r = r *. Therefore, the union interest rate is constant, too. The exchange rate between the monetary union and the rest of the world is flexible.

官僚統(tǒng)治

Rational Corporations in Irrational Marketss. P. denotes the price of German goods, P2 is the price of French goods, and P3 is the price of Italian goods. In the short run, money wages and prices are rigid. For ease of exposition, let be P. = P2 = P3 = 1. We assume that union countries are the same size and have the same behavioural function