The macroeconomics of social pacts

Acocella, Nicola and Di Bartolomeo, Giovanni and Tirelli, Patrizio (2009) The macroeconomics of social pacts. Working Paper. Dipartimento di Studi Geoeconomici, Linguistici, Statistici e Storici per l'Analisi regionale, Università di Roma La Sapienza, Roma, Italia, Roma. (In Press)


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In this paper we analyze macroeconomic interactions between trade unions, the central bank and the fiscal policymaker. We explicitly model unions’ concern for public expenditure, paving the way for an analysis of the potential gains from cooperation between the fiscal policymaker and the unions, i.e. the so-called corporatist or social pacts that have characterized economic policies in a number of European countries in the last few decades. We also highlight the profoundly different incentives generated by institutional arrangements such as the Maastricht criteria and the Stability and Growth Pact. The former has unambiguously induced more efficient outcomes; the latter is likely to backfire!

Item Type: Monograph (Working Paper)
Additional Information: JEL Classification: E42, E58, E61, E62, E64, H30, J51, J58.
Uncontrolled Keywords: Corporatism, trade unions, fiscal policy, monetary conservativeness, policy game
Subjects: 300 Scienze sociali > 330 Economia
Depositing User: Prof. Nicola Acocella
Date Deposited: 16 Jul 2009
Last Modified: 20 May 2010 12:02

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