Author: Franco ModiglianiPublisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 52
Book Description
The Management of an Open Economy with "100% Plus" Wage Indexation
Author: Franco ModiglianiPublisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 52
Book Description
The Macroeconomic Consequences of Wage Indexation Revisited
Author: Mr.Esteban JadresicPublisher: International Monetary Fund
ISBN: 1451843232
Category : Business & Economics
Languages : en
Pages : 55
Book Description
Since the mid-1970s, there has been considerable research on the macroeconomic consequences of wage indexation. Nonetheless, until recently, this research had not explicitly explored the implications of contracts that index wages to lagged inflation, the usual type of wage indexation observed in practice. Drawing mainly on recent research by the author, this paper examines the consequences of wage indexation to lagged inflation on aggregate wage formation, the cost of disinflation under money- and exchange-rate-based stabilization, the variability of output under alternative shocks and policy regimes, the choice of exchange rate regime, and the level and variability of inflation.
The Effects of Forward-Versus Backward-Looking Wage Indexationon Price Stabilization Programs
Author: Mr.Joe CrowleyPublisher: International Monetary Fund
ISBN: 1451845650
Category : Business & Economics
Languages : en
Pages : 35
Book Description
A standard open-economy model is used to show that price stabilization programs are more likely to succeed if labor contracts specify forward-looking wage indexation. Compared with contracts specifying backward-looking wage indexation or wages based on static expectations, such contracts will result in a greater reduction in inflation with lower output costs, smaller misalignment of real wages, smaller outflows of reserves, smaller disruptions caused by policy announcements, and a reduced impact of some shocks during price stabilization programs. These results are generally true whether or not capital is mobile and whether or not expectations are rational.
Real and Relative Wage Rigidities
Author: Pertti HaaparantaPublisher:
ISBN:
Category : Indexation (Economics)
Languages : en
Pages : 30
Book Description
The Management of an Open Economy with "100 Percent Plus" Wage Indexation
Author: Franco ModiglianiPublisher:
ISBN: 9780881650372
Category :
Languages : en
Pages : 43
Book Description
Real Wages and the Terms of Trade
Author: Richard C. MarstonPublisher:
ISBN:
Category : Indexation (Economics)
Languages : en
Pages : 44
Book Description
This paper examines the desirability of wage indexation in an open economy subject to economic disturbances which change the terms of trade and raise the prices of imported goods. Two indexation rules are considered, the traditional form of indexation to the consumer price index and indexation to the price of domestic goods alone, the latter proposed as a means of limiting the influence of import prices on the economy. The effects of the rules are shown to depend upon how the terms of trade rather than import prices alone respond to disturbances, since changes in the terms of trade determine what adjustments are required in the two real wages faced by firms and labor.
Optimal Wage Indexation and Monetary Policy in a Small Open Economy with Non-traded Goods
Author: Michele Santo BresciaPublisher:
ISBN:
Category : Monetary policy
Languages : en
Pages : 254
Book Description
Wage Indexation and Exchange Market Intervention in a Small Open Economy
Author: Stephen J. TurnovskyPublisher:
ISBN:
Category : Economic stabilization
Languages : en
Pages : 46
Book Description
The analysis of this paper stresses the interdependence between wage indexation on the one hand, and exchange market intervention on the other, as tools of'macroeconomic stabilization policy in a small open economy subject to stochastic disturbances. It is shown how the choice of eitherpolicy instrument impinges on the effectiveness of the other. In particular, if the domestic money wage is fully indexed to some weighted average of the domestic and foreign price levels, then irrespective of what that chosen weight may be, exchange market intervention is rendered totally ineffective insofar as the stabilization of the real part of the domestic economy is concerned. Likewise, if the monetary authority intervenes in the exchange market so as to exactly accommodate for nominal movements in the demand for money, thereby rendering the excess demand for money dependent only upon real variables, then any form of wage indexation is totally ineffective for the stabilization of the real part of the system. In either polar case, the respective instrument can stabilize the domestic price level. Alternative combinations of policy for the stabilization for domestic and foreign disturbances are considered.
Wage Indexation, the Scandinavian Model and Macroeconomic Stability in the Open Economy
Author: Wage Determination and Incomes Policy in Open Economies
Author: Ms.Anne Romanis BraunPublisher: International Monetary Fund
ISBN: 9780939934751
Category : Business & Economics
Languages : en
Pages : 404
Book Description
Written by Anne Romanis Braun, a former staff member of the IMF's Research Department, this volume deals with the nature of wage determination and the problem of securing an economically appropriate development of money incomes in an open economy over the medium term.