Sebastian Dullien gives a novel explanation for unemployment and inflation in the Euro-Zone. He argues that unemployment stems from a lack of co-operation between unions and monetary authorities: In an economy with endogenous money as EMU, wage setters are responsible for price stability while the central bank is responsible for the level of output. Co-operation between both actors is necessary for high employment and low inflation. The current institutional set-up is found to be unable to assure cooperation.

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Authors and Affiliations

Financial Times Deutschland, Germany

Sebastian Dullien

About the author

SEBASTIAN DULLIEN is Economics Correspondent at the Financial Times Deutschland, the German language edition of the FT. Previously he worked as a short term expert for the Deutsches Institut für Wirtschaftsforschung. He also teaches at the Freie Universität in Berlin.

Bibliographic Information

Book Title: The Interaction of Monetary Policy and Wage Bargaining in the European Monetary Union
Book Subtitle: Lessons from the Endogenous Money Approach
Authors: Sebastian Dullien
DOI: https://doi.org/10.1057/9780230006140
Publisher: Palgrave Macmillan London
eBook Packages: Palgrave Economics & Finance Collection, Economics and Finance (R0)
Copyright Information: Palgrave Macmillan, a division of Macmillan Publishers Limited 2004
Hardcover ISBN: 978-1-4039-4151-0Published: 11 October 2004
Softcover ISBN: 978-1-349-52080-0Published: 01 January 2004
eBook ISBN: 978-0-230-00614-0Published: 11 October 2004
Edition Number: 1
Number of Pages: XIV, 276
Topics: Macroeconomics/Monetary Economics//Financial Economics, International Political Economy, Labor Economics

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Table of contents (8 chapters)

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