Monetary and Non-Monetary Inflation Factors

2019 ◽  
Vol 7 (4) ◽  
pp. 9-14
Author(s):  
Ольга Николайчук ◽  
Olga Nikolaychuk ◽  
Э. Зайцева ◽  
E. Zayceva
Keyword(s):  
Financial Stability ◽  
Scientific Research ◽  
Wage Growth ◽  
Macroeconomic Policy ◽  
Nominal Wage ◽  
Graphic Method ◽  
Theoretical Conclusion ◽  
Previous Issue ◽  
Analysis And Synthesis ◽  
The Relationship

In continuation of our scientific research, published in the previous issue of the journal, this article was written. In the process of research, the methods of analysis and synthesis, the graphic method were used. The results of this study prove the general theoretical conclusion about the relationship between nominal wage growth and inflation. Achieving financial stability is possible with a decrease in the rate of inflation. Based on the analysis of the scientific periodic and monographic literature, the calculations we have cited, the article concluded that the reasons for inflation in Russia are mostly non-monetary. But when choosing a macroeconomic policy, it is necessary to base on the coordination of influence on both monetary and non-monetary factors of inflation.

scholarly journals The Relationship between Real Wages and Output: Evidence from Pakistan

2000 ◽  
Vol 39 (4II) ◽  
pp. 1111-1126 ◽  
Author(s):  
Afia Malik ◽  
Ather Maqsood Ahmed
Keyword(s):  
Business Cycles ◽  
Interest Rates ◽  
Real Wage ◽  
Phillips Curve ◽  
Labour Supply ◽  
Nominal Wage ◽  
Purchasing Power ◽  
Real Wages ◽  
The Real ◽  
The Relationship

Information on wage levels is essential in evaluating the living standards and conditions of work and life of the workers. Since nominal wage fails to explain the purchasing power of employees, real wage is considered as a major indicator of employees purchasing power and can be used as proxy for their level of income. Any fluctuations in the real wage rate have a significant impact on poverty and the distribution of income. When used in relation with other economic variables, for instance employment or output they are valuable indicators in the analysis of business cycles. There has been a long debate regarding the relationship between real wages and the employment (output). Despite the apparent simplicity, the relationship between real wages and output has remained deceptive both theoretically and empirically. Keynes (1936) viewed cyclical movements in employment along a stable labour demand schedule thus indicating counter cyclical real wages. His deduction is in line with sticky wages and sticky expectations, which augments models like Phillips curve. In these models real wages behaved as counter-cyclical as nominal wages are slow to adjust during recession (decrease in aggregate demand and associated slowdown in price growth). Stickiness of wages or expectations shifts the labour supply over the business cycles [Abraham and Haltiwanger (1995)]. Barro (1990) and Christiano and Eichenbaum (1992) have associated these labour supply shifts with intertemporal labour-leisure substitution. This in response to temporary changes in real interest rates (fiscal policy shocks) could yield counter-cyclical real wages. However, Long and Plosser (1983) and Kydland and Prescott (1982) while studying the real business cycle models highlight on the technology shocks which leads to pro-cyclical real wages.

Wage Growth and Interest Rates Again: A Regression Model

1993 ◽  
Vol 6 (2) ◽  
pp. 175-175
Author(s):  
Phillip H. Allman
Keyword(s):  
Regression Model ◽  
Interest Rates ◽  
Wage Growth

Abstract No abstract available.

scholarly journals The Relative Power of Employment-to-Employment Reallocation and Unemployment Exits in Predicting Wage Growth

2017 ◽  
Vol 107 (5) ◽  
pp. 364-368 ◽  
Author(s):  
Giuseppe Moscarini ◽  
Fabien Postel-Vinay
Keyword(s):  
Phillips Curve ◽  
Labor Demand ◽  
Wage Growth ◽  
Nominal Wage ◽  
Hourly Wage ◽  
Program Participation ◽  
Hourly Wage Rate ◽  
Wage Inflation ◽  
Labor Market Flows ◽  
Job Finding

We study the cyclical comovement nominal wage growth (either monthly earnings or hourly wage rate) and labor market flows. We use microdata from the Survey of Income and Program Participation over 1996-2013 to purge composition effects in worker and job characteristics and to isolate the reallocative effect of Employer-to-Employer (EE) transitions. We find an “EE wage Phillips curve”: wage inflation comoves positively with EE as strongly as with the employment rate. This correlation holds for job stayers; we interpret the EE rate as a measure of labor demand. We find no analogous evidence for the job-finding rate from unemployment.

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