Imported Materials Prices, Wage Policy, and Macroeconomic Stabilization

Richard C. Marston, Stephen J. Turnovsky

This paper analyzes two simple wage rules that keep employment constant when there are shocks to the prices of imported materials. One rule ties nominal wages to the GNP deflator rather than the consumer price index. The second rule, followed by Japan after the second oil price shock, ties the real wage to real GNP. The paper shows the effects on output, real income, and other macroeconomic variables of choosing either rule in place of the real wage stability provided by conventional wage indexation

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Year of publication:	December 1983
Authors:	Marston, Richard C.
Other Persons:	Turnovsky, Stephen J. (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Lohnpolitik \| Wage policy \| Stabilisierungspolitik \| Stabilization policy \| Rohstoffmarkt \| Commodity market \| Lohnrigidität \| Wage rigidity \| Theorie \| Theory \| Offene Volkswirtschaft \| Open economy

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Extent:	1 Online-Ressource
Series:	NBER working paper series ; no. w1254
Type of publication:	Book / Working Paper
Language:	English
Notes:	Mode of access: World Wide Web System requirements: Adobe [Acrobat] Reader required for PDF files Hardcopy version available to institutional subscribers.
Other identifiers:	10.3386/w1254 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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