Wage contracts, capital mobility, and macroeconomic policy /

Wage contracts, capital mobility, and macroeconomic policy /

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Bibliographic Details
Author / Creator:	Agénor, Pierre-Richard, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, ©1995.
Description:	1 online resource (iii, 29 pages).
Language:	English
Series:	IMF working paper ; no. 95/10 IMF working paper ; WP/95/10.
Subject:	Wages -- Cost-of-living adjustments -- Developing countries -- Econometric models. Capital movements -- Developing countries -- Econometric models. Government spending policy -- Developing countries -- Econometric models. Economic policy -- Econometric models. Wages -- Econometric models. Wages -- Econometric models. Capital movements -- Econometric models. Economic policy -- Econometric models. Government spending policy -- Econometric models. Wages -- Cost-of-living adjustments -- Econometric models. Developing countries -- Economic policy -- Econometric models. Developing countries.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12496289

Hidden Bibliographic Details
Other authors / contributors:	International Monetary Fund. Research Department, issuing body.
ISBN:	1455255386 9781455255382
Notes:	Includes bibliographical references. Restrictions unspecified Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	Annotation This paper examines the long-run effects of macroeconomic policy shocks on the behavior of output, inflation, real wages and the real exchange rate in a small open economy. the analysis is based on a two-sector, three-good optimizing model with imperfect capital mobility, nominal wage contracts with backward- or forward-looking price expectations, and endogenous mark-up pricing in the nontraded goods sector. the effects of a cut in government spending on nontraded goods are shown to be independent of the expectational mechanism embedded in wage contracts. a reduction in the nominal devaluation rate lowers steady-state output in the tradable sector under backward-looking contracts, but exerts an expansionary effect under forward-looking contracts.
Other form:	Print version: Agénor, Pierre Richard. Wage contracts, capital mobility, and macroeconomic policy. [Washington, D.C.] : International Monetary Fund, ©1995