JOURNAL ARTICLE
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Lohnpolitik und Beschäftigung in der offenen Wirtschaft
Was sagt der monetäre Ansatz?
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 100 (1980), Iss. 3 : pp. 297–336
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Schmid, Michael
Abstract
This paper provides a simple synthesis of the Keynesian and monetary approaches to modelling the open economy. On the one hand a supply-management policy of domestic wage-restraint is shown to be a beggar-myneighbour policy under fixed exchange rates. Under flexible rates there is a reduced efficacy of this policy w. r. t. domestic employment because at least in a one-good two-country model flexible rates provide perfect insulation against transmission of domestic price-output impulses to the foreign economy. On the other hand demand-management policy is demonstrated not to be sufficient to fight unemployment and inflation in open economies unless trade unions pursue co-responsible wage policies.