Showing 1 - 10 of 7,737
This paper develops a unified framework for the analysis of wage indexation and monetary policy in the presence of supply shocks. We first present simple formulae for the optimal wage indexation rule and for the optimal money supply rule. In order to set the stage for an evaluation of departures...
Persistent link: https://www.econbiz.de/10013313305
This paper investigates the effects of wage indexation on the time-consistent level of inflation. Departing from … previous work on time-consistent policy, we study a structural model of the economy. Indexation reduces the cost of inflation … raise inflation but also to raise welfare: the loss from higher inflation is outweighed by the gain from greater protection …
Persistent link: https://www.econbiz.de/10013218529
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...
Persistent link: https://www.econbiz.de/10013228637
Our paper seeks to provide an explanation for why the prevalence of COLA provisions and their characteristics vary widely across U.S. industries. We develop models of optimal risk sharing between a firm and union that allows us to investigate the determinants of a number of characteristics of...
Persistent link: https://www.econbiz.de/10013237296
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...
Persistent link: https://www.econbiz.de/10013212914
were large relative both to the level and trend of the expected rate of average wage inflation and to the existing relative … implies that, if the year-to-year variation in expected wage inflation were large relative to the year-to-year variation in … unexpected wage inflation, indexation would increase the year-to-year variation in minimum-wage employment …
Persistent link: https://www.econbiz.de/10013324086
The interdependence between the optimal degree of wage indexation and optimal monetary policy is analyzed for a small open economy under a variety of assumptions regarding: (i) relative information available to private agents and the stabilization authority; (ii) the perceived nature of the...
Persistent link: https://www.econbiz.de/10013249251
This paper deals with the design of optimal monetary policy and with the interaction between the optimal degrees of wage indexation and foreign exchange intervention. The model is governed by the characteristics of the stochastic shocks which affect the economy and by the information set that...
Persistent link: https://www.econbiz.de/10012760345
The interdependence between the optimal degree of wage indexation and optimal monetary policy is analyzed for a small open economy under a variety of assumptions regarding: (i) relative information available to private agents and the stabilization authority; (ii) the perceived nature of the...
Persistent link: https://www.econbiz.de/10012760318
The paper discusses policy relevant models, going from (1) chronic inflation in the 20th century after WWII, to (2 …
Persistent link: https://www.econbiz.de/10012984757