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Replication data for: Understanding the Gains from Wage Flexibility: The Exchange Rate Connection

Version
V0
Resource Type
Dataset
Creator
  • Galí, Jordi
  • Monacelli, Tommaso
Publication Date
2016-12-01
Description
  • Abstract

    We study the gains from increased wage flexibility using a small open economy model with staggered price and wage setting. Two results stand out: (i) the effectiveness of labor cost reductions as a means to stimulate employment is much smaller in a currency union, and (ii) an increase in wage flexibility often reduces welfare, more likely so in an economy that is part of a currency union or with an exchange-rate-focused monetary policy. Our findings call into question the common view that wage flexibility is particularly desirable in a currency union.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/aer.20131658 (Text)
Publications
  • Galí, Jordi, and Tommaso Monacelli. “Understanding the Gains from Wage Flexibility: The Exchange Rate Connection.” American Economic Review 106, no. 12 (December 2016): 3829–68. https://doi.org/10.1257/aer.20131658.
    • ID: 10.1257/aer.20131658 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Galí, Jordi; Monacelli, Tommaso (2016): Replication data for: Understanding the Gains from Wage Flexibility: The Exchange Rate Connection. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E112966