The Effects of Alternative Wage Regimes in a Monetary Union: a Multi-Country Agent Based-Stock Flow Consistent Model.
Caiani, A., Catullo, E. Gallegati, M. - The Eurozone crisis has revitalized the debate between economists on the role played by wages in open economies. Salaries paid to workers are at the same time a fundamental source of aggregate demand and a determinant of firms’ international cost competitive-ness. The paper investigates how alternative wage growth patterns impact on the economic dynamics of an artificial Monetary Union.