The lost paradise : wage rigidity, market segmentation and the ranking of OCA criteria

Jean-Christophe Poutineau (1)

1 CREM - Centre de recherche en économie et management

This paper develops a compact new open macroeconomics model of a Monetary Union to evaluate, on the one hand, the consequences of the imperfect integration of the goods and labour markets, when countries are hit by asymmetric demand shocks and, on the other hand, the macroeconomic and welfare gains associated to a further integration of either market.

Mots clés: market segmentation; new open economy; macroeconomics; optimal currency area

Domaines: Economies et finances

Jean-Christophe Poutineau. The lost paradise : wage rigidity, market segmentation and the ranking of OCA criteria. European Economic Association, 20th Annual Congress, Aug 2005, Amsterdam, Netherlands. ⟨halshs-00004960⟩