scholarly journals Money Wage Rigidity, Monopoly Power and Hysteresis

2009 ◽  
pp. 162-208 ◽  
Author(s):  
Alfonso Palacio-Vera
2006 ◽  
Vol 51 (03) ◽  
pp. 365-394 ◽  
Author(s):  
CARL CHIARELLA ◽  
PETER FLASCHEL ◽  
HING HUNG

In this paper, we develop a model of business cycle fluctuations between two interacting open economies within the disequilibrium or non-market clearing paradigm. We analyze the main feedback mechanisms (Keynes, Mundell, Rose and Dornbusch) driving the dynamics and the conflict between their stabilizing and destabilizing tendencies and how these depend on certain key speeds of adjustment in the real and foreign exchange sectors. We explore numerically a variety of situations of interacting price cycles in the two countries, where the steady state is locally repelling, but where the overall dynamics are bounded in an economically meaningful domain by assuming downward money wage rigidity.


1970 ◽  
Vol 15 (1) ◽  
Author(s):  
A. M. Endres

This article discusses distinctive features of the New Zealand debate on the economics of wages and wages policy from 1931 up to the restoration of compulsory arbitration in 1936. Local economic orthodoxy proffered advice which, consistent with Keynes (1936), turned on the need for a general real wage reduction effected mostly through currency devaluation, rather than through further money wage cuts. Dissenters were critical of currency devaluation; they stressed excessively generous unemployment relief, real wage 'overhang' and structural real wage distorttons. Tentative estimates of both aggregate real product wage and labour productivity changes demonstrate, prima facie, that at least one strand in the dissenting argument was defensible.


2016 ◽  
Author(s):  
James M. Holmes ◽  
John M. Holmes ◽  
Patricia A. Hutton

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