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Unemployment, wage indexation and commercial policies

journal contribution
posted on 1993-01-01, 00:00 authored by Chi-Chur Chao, J R Conlon
This paper shows the effects of wage indexation schemes in the presence of relative price variations. In particular, it is shown that indexation schemes which seem reasonable can nevertheless leave the level of employment vulnerable to terms of trade shocks. The indexation scheme which isokates the employment level from the effects of price variations is derived, and the effects of commercial policies in the presence of indexation are examined. © 1993.

History

Journal

Journal of Macroeconomics

Volume

15

Issue

1

Pagination

165 - 174

ISSN

0164-0704

Publication classification

CN.1 Other journal article

Copyright notice

1993, Elsevier

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