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

Tommaso Monacelli & Jordi Galí
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...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.