Skip navigation
Skip navigation

Monopolistic Unions, Brainard Uncertainty, and Optimal Monetary Policy

Henckel, Timo

Description

Some authors have argued that multiplicative uncertainty may benefit society as the cautionary motive reduces the inflation bias. However, when there are nonatomistic wage setters, higher multiplicative uncertainty may raise the wage premium and unemployment and thus reduce welfare. Furthermore, since central bank preferences also affect the wage premium, delegating policy to an independent central banker with an optimal degree of conservatism cannot deliver a second-best outcome.

CollectionsANU Research Publications
Date published: 2009
Type: Journal article
URI: http://hdl.handle.net/1885/29109
Source: Oxford Economic Papers
DOI: 10.1093/oep/gpp011

Download

File Description SizeFormat Image
01_Henckel_Monopolistic_Unions,_Brainard_2009.pdf121.11 kBAdobe PDF    Request a copy
02_Henckel_Monopolistic_Unions,_Brainard_2009.pdf117.22 kBAdobe PDF    Request a copy


Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  20 July 2017/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator