ISBN: 3540433597
TITLE: Inflation in a Monetary Union
AUTHOR: Carlberg
TOC:

Introduction 1
Part One. The Closed Economy 11
1. The Static Model 13
1.1. Fixed Wages 13
1.2. Flexible Wages 16
2. Given Money Growth 17
2.1. The Dynamic Model 17
2.2. Inflation and Wage Growth 20
2.3. Nominal and Real Interest Rates 22
3. Target Inflation and Required Money Growth 23
Part Two. The World of Two Monetary Regions 27
Chapter 1. The Static Model 29
1. Fixed Wages 29
2. Flexible Wages 38
Chapter 2. Given Money Growth 41
1. The Dynamic Model 41
2. Inflation and Depreciation 45
2.1. Producer Inflation 45
2.2. Nominal Depreciation 46
2.3. Real Depreciation 48
2.4. Consumer Inflation 50
3. Wage Growth 55
3.1. Productivity Growth 55
3.2. Labour Growth 60
4. Nominal and Real Interest Rates 66
Chapter 3. Target Inflation and Required Money Growth 71
1. Required Money Growth 71
1.1. The Dynamic Model 71
1.2. Required Money Growth 72
1.3. Nominal Depreciation 74
1.4. Nominal Interest Rates 75
1.5. Producer Inflation 77
2. Wage Growth 79
2.1. The Dynamic Model 79
2.2. Productivity Growth 80
2.3. Labour Growth 83
Chapter 4. The Monetary Regions Differ in Size 87
Part Three. The Monetary Union of Two Countries 91
Chapter 1. The Static Model 93
1. Fixed Wages 93
2. Flexible Wages 106
Chapter 2. Given Money Growth 109
1. The Dynamic Model 109
2. Inflation and Depreciation 115
2.1. Producer Inflation 115
2.2. Nominal Depreciation 116
2.3. Real Depreciation 117
2.4. Consumer Inflation 120
3. Wage Growth 125
3.1. Productivity Growth 125
3.2. Labour Growth 130
4. Nominal and Real Interest Rates 136
Chapter 3. Target Inflation and Required Money Growth 141
1. The Dynamic Model d 141
2. Required Money Growth 143
3. Wage Growth 146
Chapter 4. The Union Countries Differ in Size 151
Part Four. A One-Good Model of the World Economy 157
Chapter 1. The World of Two Monetary Regions 159
1. The Static Model 159
2. The Dynamic Model 161
3. Inflation and Depreciation 162
4. Wage Growth 164
5. Nominal and Real Interest Rates 165
6. Target Inflation and Required Money Growth 167
Chapter 2. The Monetary Union of Two Countries 171
1. The Static Model 171
2. The Dynamic Model 172
3. Given Money Growth 174
4. Target Inflation and Required Money Growth 177
Part Five. Microfoundations for a Monetary Union 179
Chapter 1. The World of Two Monetary Regions 181
1. The Approach 181
2. The Demand Functions of European Households 182
3. The Demand Functions of American Households 185
4. The Market for European Goods 188
5. The Market for American Goods 189
6. A First Model of Europe and America 190
7. The Consumption, Export and Import Functions of Europe 191
8. The Consumption, Export and Import Functions of America 194
9. A Second Model of Europe and America 197
Chapter 2. The Monetary Regions Differ in Size 199
1. The Model 199
2. The Exact Solution 200
3. An Approximate Solution for the Small Monetary Region 202
Chapter 3. The Large Monetary Union of Two Countries 205
1. The Approach 205
2. The Demand Functions of German Households 207
3. The Demand Functions of French Households 210
4. The Demand Functions of American Households 211
5. The Market for German Goods 213
6. The Market for French Goods 214
7. The Market for American Goods 215
8. A First Model of Germany, France and America 217
9. The Consumption, Export and Import Functions of Germany 218
10. The Consumption, Export and Import Functions of France 222
11. The Consumption, Export and Import Functions of America 226
12. A Second Model of Germany, France and America 231
Chapter 4. The Small Monetary Union of Two Countries 233
Synopsis 235
1. The World of Two Monetary Regions 235
1.1. Given Money Growth 235
1.2. Target Inflation and Required Money Growth 238
2. The Monetary Union of Two Countries 240
2.1. Given Money Growth 240
2.2. Target Inflation and Required Money Growth 243
3. A One-Good Model of the World Economy 245
3.1. The World of Two Monetary Regions 245
3.2. The Monetary Union of Two Countries 249
Conclusion 253
1. The World of Two Monetary Regions 253
1.1. Given Money Growth 253
1.2. Target Inflation and Required Money Growth 259
1.3. The Monetary Regions Differ in Size 263
2. The Monetary Union of Two Countries 264
2.1. Given Money Growth 264
2.2. Target Inflation and Required Money Growth 270
2.3. The Union Countries Differ in Size 272
3. A One-Good Model of the World Economy 272
3.1. The World of Two Monetary Regions 272
3.2. The Monetary Union of Two Countries 275
4. Microfoundations for a Monetary Union 276
4.1. The World of Two Monetary Regions 276
4.2. The Monetary Union of Two Countries 278
Result 281
1. The World of Two Monetary Regions 281
1.1. Given Money Growth 281
1.2. Target Inflation and Required Money Growth 283
2. The Monetary Union of Two Countries 285
2.1. Given Money Growth 285
2.2. Target Inflation and Required Money Growth 287
Symbols 289
A Brief Survey of the Literature 291
References 295
Index 303
END
