Zusammenfassung:
In a model with a traded and a non-traded sector and centralised wage setting within each sector, it is shown that the monetary regime affects the trade-off between consumer real wages and employment and profits. Thus, the monetary regime affects the outcome of the wage negotiations, and consequently also the equilibrium level of unemployment. An exchange rate target is likely to involve lower wages and higher employment in the traded sector, and higher wages and lower employment in the non-traded sector, than does a price target. – wages ; bargaining ; inflation target ; monetary regime ; equilibrium unemployment