TY  - BOOK
AU  - Petreski,Marjan
AU  - Jovanović,Branimir
TI  - Hemlock for policy response: Monetary policy, exchange rates and labour unions in SEE and CIS during the crisis
T2  - wiiw Balkan Observatory Working Papers
PY  - 2012///
CY  - Wien
PB  - Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw)
KW  - monetary policy
KW  - fixed exchange rate
KW  - wages
KW  - unionisation
KW  - SEE
KW  - CIS
KW  - crisis
N2  - The objective of this paper is to assess how the level of unionisation and the rigidity of the exchange rate affects wages and monetary policy in South-East Europe and the Commonwealth of Independent States, with a particular focus on the recent economic crisis. Towards that end, a New Keynesian model with price and wage rigidities is used. Results suggest that fixed exchange rate and strong trade unions seem to constrain monetary policy in these countries, because monetary policy responded counter-cyclically during the crisis only in countries with weak trade unions and countries with flexible exchange rate. Also, findings point out that trade unions may be more effective for controlling inflation in these countries than the monetary authorities

UR  - https://wiiw.ac.at/p-3190.html
ER  -