Wage Indexation, Employment and Inflation
Price versus productivity-indexing is considered in a model of monetary policy with incomplete information and wage bargaining. In a perfectly price-indexed economy, the inflationary bias due to lack of credibility is eliminated. However, productivity-indexing is more appropriate to dampen macroecon...
Gespeichert in:
| Veröffentlicht in: | The Scandinavian journal of economics 2000-12, Vol.102 (4), p.645-668 |
|---|---|
| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 668 |
|---|---|
| container_issue | 4 |
| container_start_page | 645 |
| container_title | The Scandinavian journal of economics |
| container_volume | 102 |
| creator | Drudi, Francesco Giordano, Raffaela |
| description | Price versus productivity-indexing is considered in a model of monetary policy with incomplete information and wage bargaining. In a perfectly price-indexed economy, the inflationary bias due to lack of credibility is eliminated. However, productivity-indexing is more appropriate to dampen macroeconomic fluctuations that are caused by real disturbances. We show that productivity-indexing alone guarantees both price and employment stability, provided the government's reputation is good enough and the union's bargaining power is not too strong. This reduces the degree of price indexation as the union becomes weaker and the government's reputation improves. Productivity-indexing is desirable with volatile productivity processes and weak unions. |
| doi_str_mv | 10.1111/1467-9442.00219 |
| format | Article |
| fullrecord | <record><control><sourceid>jstor_proqu</sourceid><recordid>TN_cdi_proquest_miscellaneous_38965298</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><jstor_id>3440813</jstor_id><sourcerecordid>3440813</sourcerecordid><originalsourceid>FETCH-LOGICAL-c5589-eed9c84ea17f7580aa16471cae1bcaa2a7f5244ac1c0430014ebfc44c9a17c4e3</originalsourceid><addsrcrecordid>eNqFUF1rFDEUDWLBtfrsiw-LgiA47U1yk0keS1lry9IqfsxjyGYzOut8OZnV7r_3bqfsQ0EMnFy455x7L4exFxxOOL1TjjrPLKI4ARDcPmKzQ-cxm4HEPAMl4Al7mtIGAJQEPmNvC_89zi_bdbz1Y9W17-aLpq-7XRPbce7bNVFlfcc8Y0elr1N8fl-P2df3iy_nH7LlzcXl-dkyC0oZm8W4tsFg9Dwvc2XAe64x58FHvgreC5-XSiD6wAOgBOAYV2VADJYcAaM8Zm-muf3Q_drGNLqmSiHWtW9jt01OGquVsIaErx4IN912aOk2JwA0rTWCRK__JeLaSKutVUCq00kVhi6lIZauH6rGDzvHwe3Tdfss3T5Ld5cuOa4mxxD7GA7yVe1ToNg27reTnoOgf0egg4BKRUBCT9ConDbux9jQMJyG_anquPvfbvf56mYx3fBysm3S2A0Hm0QEwyXR2URXaYy3B9oPP53OZa5ccX3hvn36uCwKKJyRfwHcE6q5</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1683969950</pqid></control><display><type>article</type><title>Wage Indexation, Employment and Inflation</title><source>Jstor Complete Legacy</source><source>RePEc</source><source>Wiley Online Library Journals Frontfile Complete</source><source>Periodicals Index Online</source><source>EBSCOhost Business Source Complete</source><creator>Drudi, Francesco ; Giordano, Raffaela</creator><creatorcontrib>Drudi, Francesco ; Giordano, Raffaela</creatorcontrib><description>Price versus productivity-indexing is considered in a model of monetary policy with incomplete information and wage bargaining. In a perfectly price-indexed economy, the inflationary bias due to lack of credibility is eliminated. However, productivity-indexing is more appropriate to dampen macroeconomic fluctuations that are caused by real disturbances. We show that productivity-indexing alone guarantees both price and employment stability, provided the government's reputation is good enough and the union's bargaining power is not too strong. This reduces the degree of price indexation as the union becomes weaker and the government's reputation improves. Productivity-indexing is desirable with volatile productivity processes and weak unions.</description><identifier>ISSN: 0347-0520</identifier><identifier>ISSN: 1467-9442</identifier><identifier>EISSN: 1467-9442</identifier><identifier>DOI: 10.1111/1467-9442.00219</identifier><language>eng</language><publisher>Oxford, UK and Boston, USA: Blackwell Publishers Ltd</publisher><subject>Central banks ; Economic conditions ; Economic indices ; Economic policy ; Employment ; Employment indices ; Financial performance ; Inflation ; Inflation shocks ; Macroeconomics ; Monetary policy ; Nash equilibrium ; Nominal wages ; Periodical indexing ; Private sector ; Productivity ; reputational equilibrium ; Scandinavia ; Studies ; Wage indexation ; Wages</subject><ispartof>The Scandinavian journal of economics, 2000-12, Vol.102 (4), p.645-668</ispartof><rights>Copyright 2000 The Editors of the Scandinavian Journal of Economics</rights><rights>The Editors of the Scandinavian Journal of Economics 2000</rights><rights>Copyright Blackwell Publishers Dec 2000</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c5589-eed9c84ea17f7580aa16471cae1bcaa2a7f5244ac1c0430014ebfc44c9a17c4e3</citedby></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/3440813$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/3440813$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>314,776,780,799,1411,3994,27846,27901,27902,45550,45551,57992,58225</link.rule.ids><backlink>$$Uhttp://econpapers.repec.org/article/blascandj/v_3a102_3ay_3a2000_3ai_3a4_3ap_3a645-68.htm$$DView record in RePEc$$Hfree_for_read</backlink></links><search><creatorcontrib>Drudi, Francesco</creatorcontrib><creatorcontrib>Giordano, Raffaela</creatorcontrib><title>Wage Indexation, Employment and Inflation</title><title>The Scandinavian journal of economics</title><description>Price versus productivity-indexing is considered in a model of monetary policy with incomplete information and wage bargaining. In a perfectly price-indexed economy, the inflationary bias due to lack of credibility is eliminated. However, productivity-indexing is more appropriate to dampen macroeconomic fluctuations that are caused by real disturbances. We show that productivity-indexing alone guarantees both price and employment stability, provided the government's reputation is good enough and the union's bargaining power is not too strong. This reduces the degree of price indexation as the union becomes weaker and the government's reputation improves. Productivity-indexing is desirable with volatile productivity processes and weak unions.</description><subject>Central banks</subject><subject>Economic conditions</subject><subject>Economic indices</subject><subject>Economic policy</subject><subject>Employment</subject><subject>Employment indices</subject><subject>Financial performance</subject><subject>Inflation</subject><subject>Inflation shocks</subject><subject>Macroeconomics</subject><subject>Monetary policy</subject><subject>Nash equilibrium</subject><subject>Nominal wages</subject><subject>Periodical indexing</subject><subject>Private sector</subject><subject>Productivity</subject><subject>reputational equilibrium</subject><subject>Scandinavia</subject><subject>Studies</subject><subject>Wage indexation</subject><subject>Wages</subject><issn>0347-0520</issn><issn>1467-9442</issn><issn>1467-9442</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2000</creationdate><recordtype>article</recordtype><sourceid>X2L</sourceid><sourceid>K30</sourceid><recordid>eNqFUF1rFDEUDWLBtfrsiw-LgiA47U1yk0keS1lry9IqfsxjyGYzOut8OZnV7r_3bqfsQ0EMnFy455x7L4exFxxOOL1TjjrPLKI4ARDcPmKzQ-cxm4HEPAMl4Al7mtIGAJQEPmNvC_89zi_bdbz1Y9W17-aLpq-7XRPbce7bNVFlfcc8Y0elr1N8fl-P2df3iy_nH7LlzcXl-dkyC0oZm8W4tsFg9Dwvc2XAe64x58FHvgreC5-XSiD6wAOgBOAYV2VADJYcAaM8Zm-muf3Q_drGNLqmSiHWtW9jt01OGquVsIaErx4IN912aOk2JwA0rTWCRK__JeLaSKutVUCq00kVhi6lIZauH6rGDzvHwe3Tdfss3T5Ld5cuOa4mxxD7GA7yVe1ToNg27reTnoOgf0egg4BKRUBCT9ConDbux9jQMJyG_anquPvfbvf56mYx3fBysm3S2A0Hm0QEwyXR2URXaYy3B9oPP53OZa5ccX3hvn36uCwKKJyRfwHcE6q5</recordid><startdate>200012</startdate><enddate>200012</enddate><creator>Drudi, Francesco</creator><creator>Giordano, Raffaela</creator><general>Blackwell Publishers Ltd</general><general>Blackwell Publishers</general><general>Wiley Blackwell</general><general>Basil Blackwell Ltd., etc</general><general>Blackwell Publishing Ltd</general><scope>BSCLL</scope><scope>DKI</scope><scope>X2L</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>FYSDU</scope><scope>GHEHK</scope><scope>IOIBA</scope><scope>K30</scope><scope>PAAUG</scope><scope>PAWHS</scope><scope>PAWZZ</scope><scope>PAXOH</scope><scope>PBHAV</scope><scope>PBQSW</scope><scope>PBYQZ</scope><scope>PCIWU</scope><scope>PCMID</scope><scope>PCZJX</scope><scope>PDGRG</scope><scope>PDWWI</scope><scope>PETMR</scope><scope>PFVGT</scope><scope>PGXDX</scope><scope>PIHIL</scope><scope>PISVA</scope><scope>PJCTQ</scope><scope>PJTMS</scope><scope>PLCHJ</scope><scope>PMHAD</scope><scope>PNQDJ</scope><scope>POUND</scope><scope>PPLAD</scope><scope>PQAPC</scope><scope>PQCAN</scope><scope>PQCMW</scope><scope>PQEME</scope><scope>PQHKH</scope><scope>PQMID</scope><scope>PQNCT</scope><scope>PQNET</scope><scope>PQSCT</scope><scope>PQSET</scope><scope>PSVJG</scope><scope>PVMQY</scope><scope>PZGFC</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>200012</creationdate><title>Wage Indexation, Employment and Inflation</title><author>Drudi, Francesco ; Giordano, Raffaela</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c5589-eed9c84ea17f7580aa16471cae1bcaa2a7f5244ac1c0430014ebfc44c9a17c4e3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2000</creationdate><topic>Central banks</topic><topic>Economic conditions</topic><topic>Economic indices</topic><topic>Economic policy</topic><topic>Employment</topic><topic>Employment indices</topic><topic>Financial performance</topic><topic>Inflation</topic><topic>Inflation shocks</topic><topic>Macroeconomics</topic><topic>Monetary policy</topic><topic>Nash equilibrium</topic><topic>Nominal wages</topic><topic>Periodical indexing</topic><topic>Private sector</topic><topic>Productivity</topic><topic>reputational equilibrium</topic><topic>Scandinavia</topic><topic>Studies</topic><topic>Wage indexation</topic><topic>Wages</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Drudi, Francesco</creatorcontrib><creatorcontrib>Giordano, Raffaela</creatorcontrib><collection>Istex</collection><collection>RePEc IDEAS</collection><collection>RePEc</collection><collection>CrossRef</collection><collection>Periodicals Index Online Segment 07</collection><collection>Periodicals Index Online Segment 08</collection><collection>Periodicals Index Online Segment 29</collection><collection>Periodicals Index Online</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - West</collection><collection>Primary Sources Access (Plan D) - International</collection><collection>Primary Sources Access & Build (Plan A) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Midwest</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Northeast</collection><collection>Primary Sources Access (Plan D) - Southeast</collection><collection>Primary Sources Access (Plan D) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Southeast</collection><collection>Primary Sources Access (Plan D) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - UK / I</collection><collection>Primary Sources Access (Plan D) - Canada</collection><collection>Primary Sources Access (Plan D) - EMEALA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - International</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - International</collection><collection>Primary Sources Access (Plan D) - West</collection><collection>Periodicals Index Online Segments 1-50</collection><collection>Primary Sources Access (Plan D) - APAC</collection><collection>Primary Sources Access (Plan D) - Midwest</collection><collection>Primary Sources Access (Plan D) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Canada</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - EMEALA</collection><collection>Primary Sources Access & Build (Plan A) - APAC</collection><collection>Primary Sources Access & Build (Plan A) - Canada</collection><collection>Primary Sources Access & Build (Plan A) - West</collection><collection>Primary Sources Access & Build (Plan A) - EMEALA</collection><collection>Primary Sources Access (Plan D) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - Midwest</collection><collection>Primary Sources Access & Build (Plan A) - North Central</collection><collection>Primary Sources Access & Build (Plan A) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - Southeast</collection><collection>Primary Sources Access (Plan D) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - APAC</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - MEA</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>The Scandinavian journal of economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Drudi, Francesco</au><au>Giordano, Raffaela</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Wage Indexation, Employment and Inflation</atitle><jtitle>The Scandinavian journal of economics</jtitle><date>2000-12</date><risdate>2000</risdate><volume>102</volume><issue>4</issue><spage>645</spage><epage>668</epage><pages>645-668</pages><issn>0347-0520</issn><issn>1467-9442</issn><eissn>1467-9442</eissn><abstract>Price versus productivity-indexing is considered in a model of monetary policy with incomplete information and wage bargaining. In a perfectly price-indexed economy, the inflationary bias due to lack of credibility is eliminated. However, productivity-indexing is more appropriate to dampen macroeconomic fluctuations that are caused by real disturbances. We show that productivity-indexing alone guarantees both price and employment stability, provided the government's reputation is good enough and the union's bargaining power is not too strong. This reduces the degree of price indexation as the union becomes weaker and the government's reputation improves. Productivity-indexing is desirable with volatile productivity processes and weak unions.</abstract><cop>Oxford, UK and Boston, USA</cop><pub>Blackwell Publishers Ltd</pub><doi>10.1111/1467-9442.00219</doi><tpages>24</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0347-0520 |
| ispartof | The Scandinavian journal of economics, 2000-12, Vol.102 (4), p.645-668 |
| issn | 0347-0520 1467-9442 1467-9442 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_38965298 |
| source | Jstor Complete Legacy; RePEc; Wiley Online Library Journals Frontfile Complete; Periodicals Index Online; EBSCOhost Business Source Complete |
| subjects | Central banks Economic conditions Economic indices Economic policy Employment Employment indices Financial performance Inflation Inflation shocks Macroeconomics Monetary policy Nash equilibrium Nominal wages Periodical indexing Private sector Productivity reputational equilibrium Scandinavia Studies Wage indexation Wages |
| title | Wage Indexation, Employment and Inflation |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-29T05%3A44%3A56IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-jstor_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Wage%20Indexation,%20Employment%20and%20Inflation&rft.jtitle=The%20Scandinavian%20journal%20of%20economics&rft.au=Drudi,%20Francesco&rft.date=2000-12&rft.volume=102&rft.issue=4&rft.spage=645&rft.epage=668&rft.pages=645-668&rft.issn=0347-0520&rft.eissn=1467-9442&rft_id=info:doi/10.1111/1467-9442.00219&rft_dat=%3Cjstor_proqu%3E3440813%3C/jstor_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=1683969950&rft_id=info:pmid/&rft_jstor_id=3440813&rfr_iscdi=true |