MARKUPS AND THE EURO

• 成果类型: Article
• 署名作者: Cook, David
• 署名单位: Hong Kong University of Science & Technology
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00166
• 发表日期: 2011-11
• 页码: 1440-1452
• 关键词: exchange-rate; open-economy; optimal monetary; TRADE; POLICY; DYNAMICS; welfare

摘要

This paper reports evidence that OECD economies adopting fixed exchange rates in the process of forming the European currency union experienced declines in labor share of income at the industry level. This occurs most sharply among countries that experienced the biggest changes in their exchange rate policy. An implication of New Keynesian sticky price theory is that monetary policy has a first-order impact on labor share through the interaction of business cycle uncertainty and the choice of optimal markups. However, there is also evidence that goods market integration encouraged by the euro had a negative impact on the bargaining position of labor.