DP925 Macroeconomic Stabilization and Intervention Policy Under an Exchange Rate Band

Author(s): Roel Beetsma, Frederick van der Ploeg
Publication Date: March 1994
Keyword(s): Exchange Rate Bands, Exchange Rate Peg, Intramarginal Intervention, Monetary Accommodation, Multiple Shocks, Stabilization
JEL(s): E0, F3, F4
Programme Areas: International Macroeconomics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=925

The distributional effects of the minimum wage are analysed in a model where skilled and unskilled labour enter the production function. It is argued that distributional goals are best achieved by letting the labour market clear and achieving redistribution through taxes and transfers.