The effects of forward- versus backward-looking wage indexation on price stabilization programs /
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Author / Creator: | Crowley, Joe. |
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Imprint: | [Washington, D.C.] : International Monetary Fund, African Dept., ©1997. |
Description: | 1 online resource (34 pages) : illustrations |
Language: | English |
Series: | IMF working paper, 2227-8885 ; WP/97/38 IMF working paper ; WP/97/38. |
Subject: | |
Format: | E-Resource Book |
URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/12497712 |
Summary: | A standard open-economy model is used to show that price stabilization programs are more likely to succeed if labor contracts specify forward-looking wage indexation. Compared with contracts specifying backward-looking wage indexation or wages based on static expectations, such contracts will result in a greater reduction in inflation with lower output costs, smaller misalignment of real wages, smaller outflows of reserves, smaller disruptions caused by policy announcements, and a reduced impact of some shocks during price stabilization programs. These results are generally true whether or not capital is mobile and whether or not expectations are rational. |
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Physical Description: | 1 online resource (34 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 33-34). |
ISBN: | 1451893051 9781451893052 1281607673 9781281607676 1462347029 9781462347025 1452798729 9781452798721 9786613788382 6613788384 9781451845655 1451845650 |
ISSN: | 2227-8885 ; |