Understanding the Gains from Wage Flexibility: The Exchange Rate Connection

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, (ii) an increase in wage

本研究采用带有交错价格与工资设定 (staggered price and wage setting) 的小型开放经济模型 (small open economy model)，探讨工资灵活性提升所带来的收益。两项核心结论尤为突出：(i) 以劳动力成本削减 (labor cost reductions) 作为刺激就业的手段，其有效性在货币联盟 (currency union) 中大幅降低；(ii) 工资的增长