Working Paper BANK OF GREECE WAGE RIGIDITY AND MONETARY UNION No

Abstract

We compare monetary union to flexible exchange rates in an asymmetric, threecountry model with active monetary policy. Unlike the traditional OCA literature, we find that countries with a high degree of nominal wage rigidity benefit from monetary union, specially when they join other, similarly rigid countries. Countries with relatively more flexible wages… (More)

14 Figures and Tables

Topics

  • Presentations referencing similar topics