Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Western Hemisphere Department.
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| ISBN: | 1451894058
9781451894059
1281602108
9781281602107
1462336914
9781462336913
1452723036
9781452723037
9786613782793
6613782793
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| Notes: | Includes bibliographical references (pages 22-23).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : 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
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | Empirical data show that real wages fall sharply during periods of high inflation. This paper suggests a simple general equilibrium explanation, without relying on nominal rigidities. It presents an intertemporal two-sector model with a cash-in-advance constraint. In this setting, inflation reduces real wages through (1) a decline of the capital stock, and (2) a shift in relative prices. The two effects are additive and make the decline in real wages exceed the decline in per-capita GDP. This mechanism may contribute to rising poverty during periods of high inflation.
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| Other form: | Print version: Braumann, Benedikt. High inflation and real wages. [Washington, D.C.] : International Monetary Fund, Western Hemisphere Dept., ©2001
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