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Author Agénor, Pierre-Richard, author

Title Wage contracts, capital mobility, and macroeconomic policy / prepared by Pierre-Richard Agénor
Published [Washington, D.C.] : International Monetary Fund, [1995]
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Description 1 online resource (iii, 29 pages)
Series IMF working paper ; no. 95/10
IMF working paper ; WP/95/10
Summary Annotation This paper examines the long-run effects of macroeconomic policy shocks on the behavior of output, inflation, real wages and the real exchange rate in a small open economy. the analysis is based on a two-sector, three-good optimizing model with imperfect capital mobility, nominal wage contracts with backward- or forward-looking price expectations, and endogenous mark-up pricing in the nontraded goods sector. the effects of a cut in government spending on nontraded goods are shown to be independent of the expectational mechanism embedded in wage contracts. a reduction in the nominal devaluation rate lowers steady-state output in the tradable sector under backward-looking contracts, but exerts an expansionary effect under forward-looking contracts
Bibliography Includes bibliographical references
Notes 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. MiAaHDL
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL
Print version record
Subject Capital movements -- Developing countries -- Econometric models.
Government spending policy -- Developing countries -- Econometric models.
Wages -- Cost-of-living adjustments -- Developing countries -- Econometric models.
Developing countries -- Economic policy -- Econometric models.
Form Electronic book
Author International Monetary Fund. Research Department, issuing body
ISBN 1455255386