High inflation and real wages /

High inflation and real wages /

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Bibliographic Details
Author / Creator:	Braumann, Benedikt.
Imprint:	[Washington, D.C.] : International Monetary Fund, Western Hemisphere Dept., ©2001.
Description:	1 online resource (23 pages) : illustrations
Language:	English
Series:	IMF working paper ; WP/01/50 IMF working paper ; WP/01/50.
Subject:	Inflation (Finance) -- Econometric models. Wages -- Effect of inflation on -- Econometric models. Prices -- Effect of inflation on -- Econometric models. Poverty -- Effect of inflation on -- Econometric models. Gross domestic product -- Econometric models. Prices -- Econometric models. Poverty -- Econometric models. Gross domestic product -- Econometric models. Inflation (Finance) -- Econometric models. Wages -- Effect of inflation on -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12497170

Hidden Bibliographic Details
Other authors / contributors:	International Monetary Fund. Western Hemisphere Department.
ISBN:	1451894058 9781451894059 1281602108 9781281602107 1462336914 9781462336913 1452723036 9781452723037 9786613782793 6613782793
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.
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.
Other form:	Print version: Braumann, Benedikt. High inflation and real wages. [Washington, D.C.] : International Monetary Fund, Western Hemisphere Dept., ©2001

Description
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.
Physical Description:	1 online resource (23 pages) : illustrations
Format:	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.
Bibliography:	Includes bibliographical references (pages 22-23).
ISBN:	1451894058 9781451894059 1281602108 9781281602107 1462336914 9781462336913 1452723036 9781452723037 9786613782793 6613782793