Replication data for: Institutional and Sectoral Interactions in Monetary Policy and Wage-Price Bargaining

It examines unemployment and inflation management in developed democracies, stressing the interactions of wage/price-bargaining institutional and sectoral structure with monetary-authority credibility and conservatism. It first briefly reviews the coordinated-wage/price-bargaining and central-bank-independence literatures, highlighting theoretical and empirical weaknesses engendered by their failure to consider potential interactions between these macro-institutions.

It then synthesizes and extends these theories, showing how degrees of central-bank independence and of wage/price-bargaining coordination interact with each other and with the sectoral structure of bargaining to determine monetary-policymaker and wage/price-bargainer incentives. The results show credible monetary conservatism and traded-sector-led (not public-sector-led) coordinated bargaining to complement in producing low unemployment and to substitute in producing low inflation.