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Union power, collective bargaining, and optimal monetary policy

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Union power, collective bargaining, and optimal monetary policy. / Faia, E.; Rossi, L.
In: Economic Inquiry, Vol. 51, No. 1, 31.01.2013, p. 408-427.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Faia, E & Rossi, L 2013, 'Union power, collective bargaining, and optimal monetary policy', Economic Inquiry, vol. 51, no. 1, pp. 408-427. https://doi.org/10.1111/j.1465-7295.2012.00461.x

APA

Faia, E., & Rossi, L. (2013). Union power, collective bargaining, and optimal monetary policy. Economic Inquiry, 51(1), 408-427. https://doi.org/10.1111/j.1465-7295.2012.00461.x

Vancouver

Faia E, Rossi L. Union power, collective bargaining, and optimal monetary policy. Economic Inquiry. 2013 Jan 31;51(1):408-427. Epub 2012 May 1. doi: 10.1111/j.1465-7295.2012.00461.x

Author

Faia, E. ; Rossi, L. / Union power, collective bargaining, and optimal monetary policy. In: Economic Inquiry. 2013 ; Vol. 51, No. 1. pp. 408-427.

Bibtex

@article{7e155cde37bd47bc8e8e394501d433cc,
title = "Union power, collective bargaining, and optimal monetary policy",
abstract = "We study Ramsey policies and optimal monetary policy rules in a dynamic New Keynesian model with unionized labor markets. Collective wage bargaining and unions' monopoly power amplify inefficient employment fluctuations. The optimal monetary policy must trade off between stabilizing inflation and reducing inefficient unemployment fluctuations induced by unions' monopoly power. In this context the monetary authority uses inflation as a tax on union rents and as a mean for indirect redistribution. Results are robust to the introduction of imperfect insurance on income shocks. The optimal monetary policy rule targets unemployment alongside inflation. ",
author = "E. Faia and L. Rossi",
year = "2013",
month = jan,
day = "31",
doi = "10.1111/j.1465-7295.2012.00461.x",
language = "English",
volume = "51",
pages = "408--427",
journal = "Economic Inquiry",
issn = "0095-2583",
publisher = "Wiley-Blackwell",
number = "1",

}

RIS

TY - JOUR

T1 - Union power, collective bargaining, and optimal monetary policy

AU - Faia, E.

AU - Rossi, L.

PY - 2013/1/31

Y1 - 2013/1/31

N2 - We study Ramsey policies and optimal monetary policy rules in a dynamic New Keynesian model with unionized labor markets. Collective wage bargaining and unions' monopoly power amplify inefficient employment fluctuations. The optimal monetary policy must trade off between stabilizing inflation and reducing inefficient unemployment fluctuations induced by unions' monopoly power. In this context the monetary authority uses inflation as a tax on union rents and as a mean for indirect redistribution. Results are robust to the introduction of imperfect insurance on income shocks. The optimal monetary policy rule targets unemployment alongside inflation.

AB - We study Ramsey policies and optimal monetary policy rules in a dynamic New Keynesian model with unionized labor markets. Collective wage bargaining and unions' monopoly power amplify inefficient employment fluctuations. The optimal monetary policy must trade off between stabilizing inflation and reducing inefficient unemployment fluctuations induced by unions' monopoly power. In this context the monetary authority uses inflation as a tax on union rents and as a mean for indirect redistribution. Results are robust to the introduction of imperfect insurance on income shocks. The optimal monetary policy rule targets unemployment alongside inflation.

U2 - 10.1111/j.1465-7295.2012.00461.x

DO - 10.1111/j.1465-7295.2012.00461.x

M3 - Journal article

VL - 51

SP - 408

EP - 427

JO - Economic Inquiry

JF - Economic Inquiry

SN - 0095-2583

IS - 1

ER -