Robust GDP growth, declining unemployment, low and stable inflation, and a string of fiscal and current account …

This Selected Issues paper and Statistical Appendix examines inflation and wage dynamics in Finland. The paper … inflation for 1996:Q1–2001:Q4. The paper examines the determinants of the equilibrium real exchange rate, and also analyzes …

.2 percent to 7.8 percent. A fixed wage or indexation to consumption price inflation increases volatility most. Indexation to … wage inflation or unit labor cost growth is preferable, largely preserving labor market flexibility. …

relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes … flatter as inflation declines. Second, macroeconomic volatility shifts the Phillips curve outward, implying that stabilization … policies can play an important role in shaping the trade-off. Third, nominal wages tend to be endogenously rigid also upward …

centralization and inflation? The paper argues that centralized wage setting may offer worse outcomes, despite the existence of a …

system development, sovereign debt vulnerabilities, and ways to sustain progress in reducing inflation by strengthening the …