Bargaining structures and the central bank: Literature and empirics

Abstract

Economists’ interest in the importance of labour market structures for macroeconomic outcomes is not new. Following Bruno and Sachs’ (1985) seminal work on the negative correlation between the degree of ‘corporatism’ and the ‘misery index’ of an economy,¹ the late 1980s and early 1990s saw a tide of literature on this question. However, it was only in the late 1990s that a second tide of contributions linked the neo-corporatist literature with the economic research on central bank independence and monetary policy rules.