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Robust GDP growth, declining unemployment, low and stable inflation, and a string of fiscal and current account …
Persistent link: https://www.econbiz.de/10011245903
It is widely feared that, once prices are decontrolled in the formerly centrally–planned economies, households’ release of previously accumulated money will trigger a hyperinflation. This paper finds, instead, that whether a country’s fiscal, monetary, and labor market policies are...
Persistent link: https://www.econbiz.de/10005264162
Using quarterly time-series data for a sample of twelve industrial countries, the paper investigates the dynamics of nominal wage and price adjustments in the face of aggregate demand shocks. The evidence illustrates patterns of the wage-price spiral and accompanying fluctuations. During...
Persistent link: https://www.econbiz.de/10005599403
For a sample of US industries, nominal wage and price inflation follow aggregate price inflation closely during … contras to producers’ attempt to maintain, or even increase, industrial real price inflation during recessions. Consistently …
Persistent link: https://www.econbiz.de/10005599427
degree of wage indexation is effective in lowering inflation if nominal wages do not provide, on average, full protection … behavior, the fiscal deficit, inflation and the capital stock. Wage controls have been widely advocated as a response to the … capital decumulation and reduce inflation, since wage moderation implies higher government revenues from the profit tax and …
Persistent link: https://www.econbiz.de/10005605209
Persistent link: https://www.econbiz.de/10003652054
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Persistent link: https://www.econbiz.de/10003657927
This paper evaluates the proposal that government authorities ought to target nominal income. It begins by viewing the literature in some detail. It then undertakes a theoretical analysis of the proposal first for the small country and next for the large country. There is then a general...
Persistent link: https://www.econbiz.de/10005825863
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