This book addresses collective bargaining in an intertemporal monetary macroeconomy of the
aggregate supply-aggregate demand (AS-AD) type with overlapping generations of consumers and
with a public sector. The results are presented in a unified framework with a commodity market
that clears competitively. By analyzing the implications of three variants of collective
bargaining - efficient bargaining in a uniform and a segmented labor market and right-to-manage
wage bargaining - it identifies the quantity of money price expectations union power and
union size as the determinants of temporary equilibria. In the three scenarios it
characterizes and compares the temporary equilibria using both analytical and numerical
techniques with an emphasis on allocations welfare and efficiency. It also discusses the
dynamic evolution under rational expectations and its steady states in nominal and real terms.
Lastly it demonstrates conditions for stability regarding a balanced monetary expansion of the
economy.
